Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ALTEVA, INC. | ||
Entity Central Index Key | 104777 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 5,990,969 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $40,246,617 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating revenues: | ||
Operating revenues | $30,105 | $30,102 |
Operating expenses: | ||
Cost of services and products (exclusive of depreciation and amortization expense) | 11,791 | 13,465 |
Selling, general and administrative expenses | 20,766 | 23,989 |
Depreciation and amortization | 3,464 | 3,815 |
Loss on disposal, restructuring costs and other special charges | 700 | 447 |
Total operating expenses | 36,721 | 41,716 |
Operating loss | -6,616 | -11,614 |
Other income (expense): | ||
Interest expense, net | -162 | -756 |
Income from investment | 52,373 | 13,000 |
Other income, net | 26 | 166 |
Total other income (expense), net | 52,237 | 12,410 |
Income before income taxes | 45,621 | 796 |
Income tax expense | 16,187 | 1,442 |
Net income (loss) | 29,434 | -646 |
Preferred dividends | 25 | 25 |
Net income (loss) applicable to common stock | 29,409 | -671 |
Basic earnings (loss) per common share | $4.89 | ($0.11) |
Diluted earnings (loss) per common share | $4.89 | ($0.11) |
Weighted average shares of common stock used to calculate earnings per common share | ||
Basic | 5,808 | 6,112 |
Diluted | 5,808 | 6,112 |
Dividends declared per common share | $0.54 | |
Unified Communications [Member] | ||
Operating revenues: | ||
Operating revenues | 16,989 | 15,834 |
Operating expenses: | ||
Cost of services and products (exclusive of depreciation and amortization expense) | 7,784 | 8,798 |
Selling, general and administrative expenses | 13,199 | 15,602 |
Depreciation and amortization | 1,934 | 2,287 |
Loss on disposal, restructuring costs and other special charges | 392 | 447 |
Total operating expenses | 23,309 | 27,134 |
Operating loss | -6,320 | -11,300 |
Telephone [Member] | ||
Operating revenues: | ||
Operating revenues | 13,116 | 14,268 |
Operating expenses: | ||
Cost of services and products (exclusive of depreciation and amortization expense) | 4,007 | 4,667 |
Selling, general and administrative expenses | 7,567 | 8,387 |
Depreciation and amortization | 1,530 | 1,528 |
Loss on disposal, restructuring costs and other special charges | 308 | |
Total operating expenses | 13,412 | 14,582 |
Operating loss | ($296) | ($314) |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $29,434 | ($646) |
Other comprehensive income (loss): Defined benefit pension plans: | ||
Net actuarial gain (loss) | -3,106 | 1,960 |
Amortizaion of prior service costs | -141 | -274 |
Amortization of actuarial gain | 686 | 877 |
Other comprehensive income (loss) | -2,561 | 2,563 |
Comprehensive income | $26,873 | $1,917 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $24,047 | $1,636 |
Trade accounts receivable - net of allowance for uncollectibles - $402 and $378 at December 31, 2014 and 2013, respectively | 2,737 | 2,836 |
Other accounts receivable | 488 | 480 |
Materials and supplies | 167 | 237 |
Prepaid expenses | 349 | 774 |
Prepaid income taxes | 311 | |
Deferred income taxes | 43 | 108 |
Total current assets | 28,142 | 6,071 |
Property, plant and equipment, net | 12,384 | 13,837 |
Intangibles, net | 5,020 | 5,856 |
Seat licenses, net | 1,543 | 1,749 |
Goodwill | 9,006 | 9,006 |
Other assets | 1,023 | 744 |
Total assets | 57,118 | 37,263 |
Current liabilities: | ||
Short-term debt | 325 | 10,126 |
Accounts payable | 1,216 | 944 |
Advance billing and payments | 274 | 341 |
Accrued taxes | 1,056 | 1,692 |
Pension and postretirement benefit obligations | 276 | 267 |
Accrued wages | 1,036 | 1,007 |
Other accrued expenses | 2,885 | 2,927 |
Total current liabilities | 7,068 | 17,304 |
Long-term debt | 295 | 297 |
Deferred income taxes | 766 | 649 |
Pension and postretirement benefit obligations | 8,833 | 6,007 |
Total liabilities | 16,962 | 24,257 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred shares - $100 par value; authorized and issued shares of 5; $0.01 par value; authorized and unissued shares of 10,000 | 500 | 500 |
Common stock - $0.01 par value; authorized shares of 10,000; issued 6,826 and 6,971 shares issued at December 31, 2014 and 2013, respectively | 69 | 70 |
Treasury stock - at cost, 885 and 830 common shares at December 31, 2014 and 2013, respectively | -8,077 | -7,612 |
Additional paid in capital | 14,047 | 13,279 |
Accumulated other comprehensive loss | -3,997 | -1,436 |
Retained earnings | 37,614 | 8,205 |
Total shareholders' equity | 40,156 | 13,006 |
Total liabilities and shareholders' equity | $57,118 | $37,263 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for uncollectibles | $402 | $378 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, issued shares | 6,826,000 | 6,971,000 |
Treasury stock, common shares | 885,000 | 830,000 |
Preferred Stock $100 Par Value [Member] | ||
Preferred shares, par value | $100 | $100 |
Preferred shares, authorized shares | 5,000 | 5,000 |
Preferred shares, issued shares | 5,000 | 5,000 |
Preferred Stock $0.01 Par Value [Member] | ||
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, authorized shares | 10,000,000 | 10,000,000 |
Preferred shares, issued shares | 0 | 0 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income (loss) | $29,434 | ($646) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,464 | 3,815 |
Stock based compensation expense | 767 | 1,457 |
Deferred income taxes | 182 | 544 |
Other non-cash operating activities | 130 | 326 |
Distribution in excess of equity in earnings and gain on sale from equity investment | -49,776 | -5,729 |
Loss on disposal | 447 | |
Changes in assets and liabilities, net of effects of business acquisitions: | ||
Trade and other receivables | 58 | 64 |
Prepaid expenses and other assets | 140 | 92 |
Accounts payable and accrued expenses | 3 | 210 |
Accrued taxes | -947 | 1,997 |
Pension and postretirement benefit obligations | 274 | -353 |
Net cash (used in) provided by operating activities | -16,271 | 2,224 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | -274 | -544 |
Proceeds from sale of assets | 33 | 550 |
Purchase of seat licenses and other intangibles | -117 | -471 |
Proceeds received in excess of income from equity investments | 49,776 | 5,729 |
Net cash provided by investing activities | 49,418 | 5,264 |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from debt | 2,400 | 19,419 |
Repayments of debt and capital leases | -12,646 | -23,541 |
Payment of fees for acquisition of debt | -63 | |
Dividends | -25 | -3,340 |
Purchase of treasury stock | -465 | -126 |
Net cash used in financing activities | -10,736 | -7,651 |
Net increase (decrease) in cash and cash equivalents | 22,411 | -163 |
Cash and cash equivalents at beginning of year | 1,636 | 1,799 |
Cash and cash equivalents at end of year | 24,047 | 1,636 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 195 | 572 |
Income taxes paid (received) | 17,509 | -910 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Capitalization of loan financing costs | 93 | |
Acquisition of equipment and seat licenses under capital leases | 444 | 357 |
Seat licenses acquired, but not paid | $188 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Treasury Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | ($7,486) | $500 | $66 | $11,826 | $12,191 | ($3,999) | $13,098 |
Balance, shares at Dec. 31, 2012 | 817,700 | 5,000 | 6,576,542 | ||||
Net income (loss) | -646 | -646 | |||||
Changes in pension and postretirement benefit plans | 2,563 | 2,563 | |||||
Stock based compensation | 1,453 | 1,453 | |||||
Restricted stock issued to employees, net of forfeitures | 4 | 4 | |||||
Restricted stock issued to employees, net of forfeitures, shares | 394,084 | ||||||
Treasury stock purchased | -126 | -126 | |||||
Treasury stock purchased, shares | 12,023 | ||||||
Dividends: | |||||||
Common | -3,315 | -3,315 | |||||
Preferred | -25 | -25 | |||||
Balance at Dec. 31, 2013 | -7,612 | 500 | 70 | 13,279 | 8,205 | -1,436 | 13,006 |
Balance, shares at Dec. 31, 2013 | 829,723 | 5,000 | 6,970,626 | ||||
Net income (loss) | 29,434 | 29,434 | |||||
Changes in pension and postretirement benefit plans | -2,561 | -2,561 | |||||
Stock based compensation | 768 | 768 | |||||
Restricted stock issued to employees, shares | 22,508 | ||||||
Forfeitures of restricted stock | -1 | -1 | |||||
Forfeiture of restricted stock, shares | -167,343 | ||||||
Treasury stock purchased | -465 | -465 | |||||
Treasury stock purchased, shares | 54,945 | ||||||
Dividends: | |||||||
Preferred | -25 | -25 | |||||
Balance at Dec. 31, 2014 | ($8,077) | $500 | $69 | $14,047 | $37,614 | ($3,997) | $40,156 |
Balance, shares at Dec. 31, 2014 | 884,668 | 5,000 | 6,825,791 |
Consolidated_Statements_Of_Sha1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Sahreholders' Equity [Abstract] | ||
Common dividend, per share | $0.54 | |
Preferred dividend, per share | $5 | $5 |
Nature_Of_Operations_And_Signi
Nature Of Operations And Significant Accounting Policies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Nature Of Operations And Significant Accounting Policies [Abstract] | |||||||
Nature Of Operations And Significant Accounting Policies | NOTE 1: NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ||||||
Nature of Operations | |||||||
Alteva, Inc. ("Alteva" or the "Company") is a cloud-based communications company that provides Unified Communications ("UC") solutions, including enterprise hosted Voice over Internet Protocol ("VoIP") and operates as a regional Incumbent Local Exchange Carrier ("ILEC") in southern Orange County, New York and northern New Jersey. Unless otherwise indicated or unless the context requires, all references to the Company means the Company and its wholly-owned subsidiaries. The Company delivers cloud-based UC solutions including BroadSoft-based VoIP integrated with Microsoft Lync, Microsoft Exchange, Google Apps for Business, leading customer relationship management ("CRM") applications such as Salesforce.com and Bring-Your-Own-Device (BYOD) solutions for Mobility, which allows users to take advantage of all of the features available to them no matter where they are located or what device they are using. The Company's ILEC operations consist of providing local and toll telephone service to residential and business customers, Internet high-speed broadband service, and satellite television services provided by DIRECTV®. | |||||||
Basis of Presentation | |||||||
The accompanying consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in the consolidated financial statements | |||||||
The Company's interest in the Orange County-Poughkeepsie Limited Partnership ("O-P") is accounted for under the equity method of accounting (Note 8). | |||||||
Use of Estimates | |||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Significant estimates include, but are not limited to, depreciation and amortization expense, allowance for doubtful accounts, long-lived assets, pension and postretirement expenses, and income taxes. Actual results could differ from those estimates. | |||||||
Revenue Recognition | |||||||
The Company derives its revenue from the sale of UC services as well as traditional telephone services. | |||||||
The Company recognizes revenue when (i) persuasive evidence of an arrangement between the Company and the customer exists, (ii) the delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales or service price is reasonably assured. Revenue is reported net of all applicable sales tax. | |||||||
UC | |||||||
The Company's UC services and solutions consist primarily of its hosted VoIP UC system, certain UC applications, and other professional services associated with the installation and activation. Additionally, the Company offers customers the ability to purchase telephone equipment from the Company directly or independently from external vendors. | |||||||
Multiple element arrangements primarily include the sale of telephone equipment, along with professional services associated with installation, activation and implementation services, as well as follow on hosting services. The Company has concluded that the separate units of accounting in these arrangements consist of (i) the telephone equipment sale and (ii) the professional services provided combined with the follow on hosting services. The professional services provided do not constitute a separate unit of accounting as they do not have value to the customer on a stand-alone basis. Arrangement consideration is allocated to the separate units of accounting based on the relative selling price. The selling price for telephone equipment is based on third-party evidence representing list prices for similar equipment when sold a stand-alone basis. The selling price for professional and hosting services is based on the Company's best estimate of selling price ("BESP"). The Company develops its BESP by considering pricing practices, margin, competition and overall market trends. | |||||||
The Company bills a portion of its monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. | |||||||
Equipment sales associated with the sale of telephone equipment are recognized upon delivery to the customer, as it is considered to be a separate earnings process. The sales are recognized on a gross basis, as the Company is considered the primary obligor in customer transactions among other considerations. Other upfront fees, excluding equipment, along with associated costs, up to but not exceeding these fees, are deferred and recognized over the estimated life of the customer relationship. The Company has estimated its customer relationship life at eight years and evaluates it periodically for continued appropriateness. | |||||||
Telephone | |||||||
Revenue is earned from monthly billings to customers for local voice services, long distance, DSL, Internet services, hardware and other services. Revenue is also derived from charges for network access to the local exchange telephone network from subscriber line charges and from contractual arrangements for services such as billing and collection and directory advertising. Revenue is recognized in the period in which service is provided to the customer. Directory advertising revenue is recorded ratably over the life of the directory. With multiple billing cycles, the Company accrues revenue earned but not yet billed at the end of a quarter. The Company also defers revenue for services billed in advance and recognizes them as income when earned. | |||||||
The Telephone segment markets competitive service bundles which may include multiple deliverables. The base bundles consist of voice services (including a business or residential phone line), calling features and long distance services and customers may choose to add Internet services to a base bundle package. Separate units of accounting within the bundled packages include voice services, long distance and Internet services. Revenue for all services included in bundles are recognized over the same service period, which is the time period in which the service is provided to the customer. | |||||||
Certain revenue is realized under pooling arrangements with other service providers and is divided among the companies based on respective costs and investments to provide the services. The companies that take part in pooling arrangements may adjust their costs and investments for a period of two years, which causes the funds distributed by the pool to be adjusted retroactively. The Company believes that recorded amounts represent reasonable estimates of the final distribution from these pools. However, to the extent that the companies participating in these pools make adjustments, there will be corresponding adjustments to the Company's recorded revenue in future periods. | |||||||
Revenue from these pooling arrangements which includes Universal Service Funds ("USF") and National Exchange Carrier Association ("NECA") pool settlements, accounted for 3% and 5% of the Company's consolidated revenues for the years ended December 31, 2014 and 2013, respectively. | |||||||
Allowance for Uncollectible Accounts | |||||||
The Company maintains allowances for estimated losses resulting from the inability of specific customers to meet their financial obligations to the Company. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on the length of time specific receivables are past due based on past experience. Uncollectible accounts are charged against the allowance for doubtful accounts and subsequent cash recoveries of previously written-off bad debts are credited to the account. The following is a schedule of allowance for uncollectible accounts for the years ended December 31, 2014 and 2013: | |||||||
2014 | 2013 | ||||||
Balance at the beginning of the year | $ | 378 | $ | 638 | |||
Additions (reductions) charges to expense | 80 | (125 | ) | ||||
Recoveries of previous write offs | 12 | 97 | |||||
Current period write offs | (68 | ) | (232 | ) | |||
Balance at the end of the year | $ | 402 | $ | 378 | |||
Advertising and Promotional Costs | |||||||
Advertising and promotional costs are expensed as incurred. Advertising and promotional expenses were $0.8 million and $1.1 million for the years ended December 31, 2014 and 2013, respectively. | |||||||
Income Taxes | |||||||
The Company records deferred taxes that arise from temporary differences between the financial statement and the tax basis of assets and liabilities. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred tax assets and deferred tax liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company's deferred taxes result principally from differences in the timing of depreciation, in the accounting for pensions and other postretirement benefits and state net operating loss carryforwards. | |||||||
The process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties, make judgments regarding outcomes and utilize estimates. Management must make judgments currently about such uncertainties and determine estimates of the Company's tax assets and liabilities. To the extent the final outcome differs, future adjustments to the Company's tax assets and liabilities may be necessary. | |||||||
The Company assesses the realizability of its deferred tax assets, taking into consideration future reversals of existing temporary differences, the Company's forecast of future taxable income, and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and the amount of, valuation allowances against the Company's deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowances may be required. | |||||||
Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. | |||||||
Property, Plant and Equipment | |||||||
The Company records property, plant and equipment at cost or fair market value for its acquired properties resulting from a business acquisition. Construction costs, labor and applicable overhead costs related to installations, and interest during construction are capitalized. Costs of maintenance and repairs of property, plant and equipment are charged to operating expense. The estimated useful life of support equipment (vehicles, office and computer equipment, furniture, etc.) ranges from 3 to 19 years. The estimated useful lives of Internet equipment ranges from 3 to 5 years. The estimated useful lives of buildings, leasehold improvements and other equipment ranges from 4 to 50 years. Depreciation expense is computed using the straight-line method. | |||||||
Materials and Supplies | |||||||
The Company's materials and supplies are carried at average cost, net of reserves for obsolescence, and consist principally of telephone equipment, telephone pole and wiring spare parts and other ancillary equipment for resale. | |||||||
Cash and Cash Equivalents | |||||||
The Company considers all highly liquid instruments with an initial maturity from the date of purchase of three months or less to be cash equivalents. Cash equivalents consist primarily of money market mutual funds. The Company places its cash in a limited number of financial institutions. The balances are insured by the Federal Deposit Insurance Corporation up to $0.25 million. At times, the deposits in banks may exceed the amount of insurance provided on such deposits. The Company monitors the financial health of those banking institutions. Historically, the Company has not experienced any losses on deposits. | |||||||
Fair Value of Financial Instruments | |||||||
As of December 31, 2014 and 2013, the Company's financial instruments consisted of cash, cash equivalents, accounts receivable, accounts payable, and debt. The Company believes that the carrying values of cash, cash equivalents, accounts receivable and accounts payable at December 31, 2014 and 2013 approximated fair value due to their short-term maturity. Based on the borrowing rates currently available to the Company for loans of similar terms, the Company has determined that the carrying value of its debt approximates fair value. | |||||||
Goodwill | |||||||
Goodwill represents the excess of the purchase price of an acquired business over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. The Company tests goodwill for impairment at the reporting unit level annually on December 31, or whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If it is determined that an impairment has occurred, the Company records a write down of the carrying value and records the charge for the impairment as an operating expense during the period in which the determination is made. The Company has determined that its operating segments are the applicable reporting units because they are the lowest level at which discrete, reliable financial and cash flow information is regularly received by segment management. | |||||||
For the purpose of the goodwill impairment test, the Company can elect to perform a qualitative analysis to determine if it is more likely than not that the fair values of its reporting units are less than the respective carrying values of those reporting units. The Company elected to not perform a qualitative analysis and instead performed the first step quantitative analysis of the goodwill impairment test in the current year. The first step in the quantitative process is to compare the carrying amount of the reporting unit's net assets to the fair value of the reporting unit. If the fair value exceeds the carrying value, no further evaluation is required and no impairment loss is recognized. If the carrying amount exceeds the fair value, then the second step must be completed, which involves allocating the fair value of the reporting unit to each asset and liability, with the excess being implied goodwill. An impairment loss occurs if the amount of the recorded goodwill exceeds the implied goodwill. | |||||||
Seat Licenses and Other Intangible Assets | |||||||
Seat license are amortized by the straight-line method over their useful lives of 5 years. Other intangible assets that have finite useful lives are amortized by the straight-line method over their useful lives ranging from 3 to 15 years. | |||||||
Impairment of Long-Lived Assets | |||||||
The Company reviews business conditions to determine the recoverability of the carrying value of its long-lived assets, seat licenses and other intangibles on a periodic basis in order to identify business conditions that may indicate a possible impairment. The assessment for potential impairment is based primarily on the Company's ability to recover the carrying value of its long-lived assets from expected future undiscounted cash flows. If total expected future undiscounted cash flows are less than the carrying value of the assets, a loss is recognized for the difference between the fair value (computed based upon the expected market value or future discounted cash flows) and the carrying value of the assets. The Company periodically performs evaluations of the recoverability of the carrying value of its long-lived assets using gross undiscounted cash flow projections whenever events or changes in circumstances indicate an impairment. The cash flow projections include long-term forecasts of revenue growth, gross margins and capital expenditures. All of these items require significant judgment and assumptions. The Company believes its estimates are reasonable, based on information available at the time they are made. However, if the estimates of future cash flows are different, the Company may conclude that some of its long-lived assets are not recoverable, which would likely cause the Company to record a material impairment charge. Also, if future cash flows are significantly lower than projections, the Company may determine at some future date that all or a portion of its long-lived assets are not recoverable. | |||||||
Pension and Postretirement Obligations | |||||||
The funded status of a benefit plan, measured as the difference between plan assets at fair value and the benefit obligation is recognized in the Company's balance sheet. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. The Company is also required to recognize as a component of accumulated other comprehensive loss changes to the balances of the unrecognized prior service cost and the unrecognized actuarial loss, net of income taxes that arise during the period. The Company is also required to measure defined benefit plan assets and obligations as of the date of the Company's year-end. | |||||||
Stock-Based Compensation | |||||||
The Company measures the cost of employee services received in exchange for the award of an equity instrument based on the grant-date fair value of the award, with such cost recognized over the applicable vesting period. | |||||||
Restricted Stock | |||||||
The fair value of restricted stock is based on the closing market price of the Company's common stock on the day before the date of grant. These awards generally vest, and are settled in common stock, over a 3 year period from the date of grant. The Company recognizes compensation expense using the straight-line method over the life of the restricted stock. | |||||||
Stock Options | |||||||
The fair value of the options granted is estimated at the date of grant using the Black-Scholes option-pricing model utilizing assumptions based on historical data and current market data. The assumptions include expected term of the options, risk-free interest rate, expected volatility, and dividend yield. The expected term represents the amount of time that options granted are expected to be outstanding. The Company used the simplified method as the Company's Long-Term Incentive Plan was put in place in 2008 and does not have enough exercises to generate a historical trend. The interest rate is based on U.S. Treasury yield curve at the time of grant with a term equal to the expected term of the option. Expected volatility is estimated using historical volatility rates based on historical monthly price changes. The Company's dividend yield is based on the Company's current dividend policy. The Company recognizes compensation expense using the straight-line method over the vesting period of the options. | |||||||
Fair Value | |||||||
Fair value is the estimated price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required by accounting standards to provide the disclosure framework for measuring fair value and expanded disclosure about fair value measurements. Fair value measurements are classified and disclosed in one of the following categories: | |||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||
Level 2: | These are inputs, other than quoted prices that are included in Level 1, which are observable in the marketplace throughout the term of the assets or liabilities, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. | ||||||
Level 3: | Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. | ||||||
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||
The Company measured its pension and postretirement plan assets at fair value as of December 31, 2014 and 2013 (see Note 11). The Company does not have any other financial assets or liabilities measured at fair value on a recurring basis. | |||||||
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS |
In August 2014, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2014-15 | |
Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The update provides guidance that previously did not exist under US GAAP about a company's management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures, if applicable. The standard is effective for annual and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a significant impact to the disclosures in its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The update provides guidance on how to account for certain share-based payment awards where employees would be eligible to vest in the award regardless of whether the employee is still rendering service on the date the performance target is achieved. The standard is effective for annual and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact to its consolidated results of operation. | |
In May 2014, the FASB and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard, ASU 2014-09, Revenue from Contract with Customers, that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. The standard's primary principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. We expect to adopt this standard in the quarter ending March 31, 2017. The Company is still evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 revised guidance to only allow disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations, as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. ASU 2014-08 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a significant impact on the Company's consolidated results of operations, financial position or cash flows. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"). ASU 2013-11 provides guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The Company adopted ASU 2013-11 effective January 1, 2014 and the adoption did not have a significant impact on the Company's consolidated financial statement presentation. | |
Goodwill
Goodwill | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Goodwill And Intangible Assets[Abstract] | ||||||
Goodwill | NOTE 3: GOODWILL | |||||
The following table presents details of the Company's goodwill: | ||||||
As of December 31, | ||||||
2014 | 2013 | |||||
($ in thousands) | ||||||
Beginning of year, Goodwill - Unified Communications | $ | 9,006 | $ | 9,121 | ||
Disposals | - | (115 | ) | |||
End of year, Goodwill - Unified Communications | $ | 9,006 | $ | 9,006 | ||
For its 2014 goodwill impairment testing, the Company elected not to perform a qualitative analysis, and instead, performed the first step quantitative analysis of the goodwill impairment test in the current year, primarily due to the UC segment's historical operating losses that have been generated since the goodwill was acquired in August 2011. Management believes that these operating losses were a result of the investments made to support the future growth of the UC segment and are not indicative of the future operating performance of the UC segment. | ||||||
The estimated fair value of the Company's UC reporting unit is based on a weighting of the income and market approaches, with significant weighting given to the income approach. The Company principally relied on a discounted cash flow analysis to determine the fair value of the UC reporting unit, which considers forecasted cash flows discounted at an appropriate discount rate. The Company believes that market participants would use a discounted cash flow analysis to determine the fair value of its reporting units in a sale transaction. The annual goodwill impairment test requires us to make a number of assumptions and estimates concerning future levels of revenue growth, operating margins, depreciation, amortization and working capital requirements, which are based upon the Company's long-range plan. The Company's long-range plan is updated as part of its annual planning process and is reviewed and approved by management. The growth rates are based upon the UC segment's historical performance and the future expectations of the unified communications industry. The future profitability is based upon the Company's estimated expenses required to obtain and support the estimated revenue growth, and the UC segment's ability to leverage its current infrastructure. The UC segment and unified communications industry have experienced strong growth in recent years. The discount rate is an estimate of the overall after-tax rate of return required by a market participant, whose weighted average cost of capital includes both equity and debt, including a risk premium. While the Company uses the best available information to prepare its cash flow and discount rate assumptions, actual future cash flows or market conditions could differ significantly resulting in future impairment charges related to recorded goodwill balances. In order to evaluate the sensitivity of the goodwill impairment test to changes in the fair value calculations, the Company performed various sensitivity analyses and in each scenario, the fair value of the Company's UC reporting segment significantly exceeded the carrying value. | ||||||
Seat_Licenses_And_Other_Intang
Seat Licenses And Other Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill And Intangible Assets[Abstract] | |||||||||
Seat Licenses And Other Intangible Assets | NOTE 4: SEAT LICENSES AND OTHER INTANGIBLE ASSETS | ||||||||
The components of seat licenses are as follows: | |||||||||
Gross | Accumulated | Net | |||||||
($ in thousands) | Value | Amortization | Value | ||||||
As of December 31, 2014 | |||||||||
Seat licenses | $ | 2,936 | $ | (1,393 | ) | $ | 1,543 | ||
Gross | Accumulated | Net | |||||||
($ in thousands) | Value | Amortization | Value | ||||||
As of December 31, 2013 | |||||||||
Seat licenses | $ | 2,606 | $ | (857 | ) | $ | 1,749 | ||
The amortization expense is recorded in the consolidated statements of operations under depreciation and amortization in the amount of $0.5 million for the years ended December 31, 2014 and 2013. In 2014, the Company utilized $0.1 million of capital leases to purchase seat licenses. Terms of these capital leases are up to three years. Amortization of the seat licenses associated with capital leases is included in the depreciation and amortization line of the consolidated statements of operations. | |||||||||
Future amortization expense is expected to be recorded as follows: | |||||||||
Amount | |||||||||
Year | ($ in thousands) | ||||||||
2015 | $ | 563 | |||||||
2016 | 511 | ||||||||
2017 | 290 | ||||||||
2018 | 135 | ||||||||
2019 | 44 | ||||||||
The components of other intangible assets are as follows: | |||||||||
Average Estimated | Gross | Accumulated | Net | ||||||
($ in thousands) | Useful Lives | Value | Amortization | Value | |||||
As of December 31, 2014 | |||||||||
Customer relationships | 8 years | $ | 5,400 | $ | (2,306 | ) | $ | 3,094 | |
Trade name | 15 years | 2,400 | (547 | ) | 1,853 | ||||
Website | 12 years | 95 | (22 | ) | 73 | ||||
Total | $ | 7,895 | $ | (2,875 | ) | $ | 5,020 | ||
Average Estimated | Gross | Accumulated | Net | ||||||
($ in thousands) | Useful Lives | Value | Amortization | Value | |||||
As of December 31, 2013 | |||||||||
Customer relationships | 8 years | $ | 5,400 | $ | (1,631 | ) | $ | 3,769 | |
Trade name | 15 years | 2,400 | (387 | ) | 2,013 | ||||
Website | 12 years | 79 | (5 | ) | 74 | ||||
Total | $ | 7,879 | $ | (2,023 | ) | $ | 5,856 | ||
The amortization expense is recorded in the consolidated statements of operations under depreciation and amortization in the amount of $0.9 million for the years ended December 31, 2014 and 2013. | |||||||||
Future amortization expense is expected to be recorded as follows: | |||||||||
Amount | |||||||||
Year | ($ in thousands) | ||||||||
2015 | $ | 851 | |||||||
2016 | 849 | ||||||||
2017 | 839 | ||||||||
2018 | 839 | ||||||||
2019 | 558 | ||||||||
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Property, Plant And Equipment [Abstract] | |||||
Property, Plant And Equipment | NOTE 5: PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment, at cost, consisted of the following as of December 31, 2014 and 2013: | |||||
As of December 31, | |||||
($ in thousands) | 2014 | 2013 | |||
Land, buildings and other support equipment | $ | 10,818 | $ | 10,777 | |
Network equipment | 31,311 | 31,289 | |||
Telephone and online plant | 34,849 | 34,307 | |||
Work in process | 43 | 24 | |||
77,021 | 76,397 | ||||
Less: Accumulated depreciation | 64,637 | 62,560 | |||
Property, plant and equipment, net | $ | 12,384 | $ | 13,837 | |
Depreciation expense is based on the straight-line method. Depreciation expense for the years ended December 31, 2014 and 2013 was $2.1 million and $2.5 million, respectively. | |||||
Loss_On_DisposalBusiness_Restr
Loss On Disposal/Business Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Loss On Disposal/Business Restructuring [Abstract] | |
Loss On Disposal/Business Restructuring | NOTE 6: LOSS ON DISPOSAL/BUSINESS RESTRUCTURING |
As part of its ongoing efforts to improve performance of the UC segment, the Company initiated a restructuring of its business by disposing of its Syracuse, New York operations. Effective September 1, 2013, the Company sold certain assets of its wholly-owned subsidiary Alteva of Syracuse, Inc. to a third-party for approximately $0.6 million. The Company recorded a $0.4 million loss in the year ended December 31, 2013 relating to the exiting of the Syracuse, New York operations, which included a $0.1 million write down of goodwill. | |
Severance
Severance | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Severance [Abstract] | ||||||
Severance | NOTE 7: SEVERANCE | |||||
During the fourth quarter of 2014, the Company furthered its cost cutting initiatives and eliminated the Chief Administrative Officer ("CAO") position and provided severance with terms of six months salary plus benefits. Total severance expense recognized in selling, general, and administrative expenses was $0.1 million. As of December 31, 2014, $0.1 million remained accrued and unpaid associated with the former CAO's severance. | ||||||
On May 25, 2014, the Company continued to carry out its plan to contain costs by reducing its company-wide headcount by 7%. Total severance expense recognized in selling, general and administrative expense during the year ended December 31, 2014 related to this reduction was $0.2 million. All amounts were paid as of December 31, 2014. | ||||||
On May 21, 2013, the Company announced a reduction in workforce of its Warwick, New York facility of approximately 17% due to the decline in work associated with the Telephone segment. Total expense recognized in selling general and administrative expenses during the second quarter of 2013 related to this reduction was $0.3 million. All amounts were paid as of December 31, 2014. | ||||||
The following summarizes the movement in the severance accrual balance associated with its workforce reductions classified within accrued expenses in the balance sheet for the years ended December 31, 2014 and 2013: | ||||||
($ in thousands) | 2014 | 2013 | ||||
Beginning balance | $ | 247 | $ | - | ||
Additional accrual | 412 | 247 | ||||
Payments | (581 | ) | - | |||
Ending balance | $ | 78 | $ | 247 | ||
On March 5, 2013, the Company announced the termination of employment of the Chief Executive Officer pursuant to the terms of an employment agreement between the Company and the Chief Executive Officer dated December 14, 2011 (the "Employment Agreement"). | ||||||
Under the terms of the separation agreement signed in May 2013, and consistent with the Employment Agreement, the former Chief Executive Officer received a lump-sum cash payment of $0.5 million, which represented one year's annual salary and a lump-sum separation benefit, which was paid in the second quarter of 2013. Also under the separation agreement, the Company accelerated the unvested portions of the former Chief Executive Officer's equity based awards, which was accounted for as a forfeiture and issuance of new award equivalent to his unvested awards at his departure date. The revaluation of the new awards, along with their immediate vesting, resulted in a nominal recognition of non-cash stock-based expense during the second quarter 2013. | ||||||
Orange_CountyPoughkeepsie_Limi
Orange County-Poughkeepsie Limited Partnership | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Orange County-Poughkeepsie Limited Partnership [Abstract] | |||||
Orange County-Poughkeepsie Limited Partnership | NOTE 8: ORANGE COUNTY-POUGHKEEPSIE LIMITED PARTNERSHIP | ||||
The Company was a limited partner in the Orange County-Poughkeepsie Limited Partnership ("O-P") and had an 8.108% limited partnership interest in the O-P until April 30, 2014, which was accounted for under the equity method of accounting. The majority owner and general partner of the O-P is Verizon Wireless of the East LP ("Verizon"). | |||||
On May 26, 2011, the Company entered into an agreement (the "4G Agreement") with Verizon and Cellco Partnership (d/b/a Verizon Wireless), the other limited partner, in the O-P to make certain changes to the O-P partnership agreement. The 4G Agreement provides that the O-P's business will be converted from a wholesale business to a retail business. In addition, the 4G Agreement provided for guaranteed annual cash distributions to the Company from the O-P through 2013. For the year ended December 31, 2013, the Company received annual cash distributions from the O-P of $13.0 million. The 4G Agreement provided that, starting in 2014, the Company would receive cash distributions equal to its ownership share percentage of the approved total distributions by the O-P. The 4G Agreement also gave the Company the right (the "Put") to require Verizon to purchase all of the Company's ownership interest in the O-P during April 2013 or April 2014 for an amount equal to the greater of (a) $50.0 million or (b) the product of five (5) times 0.081081 times the O-P's EBITDA, as defined in the 4G Agreement for the calendar year preceding the exercise of the Put. | |||||
On April 30, 2014, the Company exercised the Put option and sold all of its ownership interest in the O-P for gross proceeds of $50 million, which resulted in a gain on the sale of $49.8 million. The Company will not receive any income from the O-P after April 30, 2014. The Company used a portion of the proceeds to repay all of the outstanding borrowings under the TriState credit facility and paid taxes on the related gain (see Note 10). The Company expects to use the remaining gross proceeds, among other things, to fund working capital needs and support growth initiatives. The Company may, in its discretion, use the gross proceeds for other purposes. | |||||
Pursuant to the equity method accounting of the Company's investment income, the Company is required to record the income from the O-P as an increase to the Company's investment account. The Company is required to apply the cash payments made under the 4G Agreement as a return on its investment when received. As a result of receiving the fixed guaranteed cash distributions from the O-P in excess of the Company's proportionate share of the O-P income, the investment account was reduced to zero during 2012. Thereafter, the Company recorded the fixed guaranteed cash distributions that were received from the O-P in excess of the proportionate share of the O-P income directly to the Company's statement of operations as other income. In 2014 when guaranteed distribution ceased, the Company returned to recording the income from the O-P as in increase to the Company's investment account and any cash payments received were applied as a return on its investment. As of December 31, 2014 and 2013, the investment account was zero. | |||||
For the four months ended April 30, 2014, the Company had $2.6 million in income from the O-P equity investment. | |||||
The following summarizes the income statement for the six months ended June 30, 2014 and the year ended December 31, 2013 that the O-P provided to the Company: | |||||
For the Six Months | |||||
Ended June 30, 2014 | For the Year Ended | ||||
($ in thousands) | (Unaudited) | 31-Dec-13 | |||
Net revenue | $ | 170,746 | $ | 331,278 | |
Cellular service cost | 80,051 | 156,699 | |||
Operating expenses | 44,726 | 84,927 | |||
Operating income | 45,969 | 89,652 | |||
Other income | 62 | 27 | |||
Net income | $ | 46,031 | 89,679 | ||
Company share (1) | $ | 2,597 | 7,271 | ||
(1) | Company's share for the six months ended June 30, 2014 was calculated using a weighted average ownership rate of 2.673% due to the fact that the Company exercised the Put option and sold all of its ownership interest on April 30, 2014. | ||||
The following summarizes the balance sheet as of December 31, 2013 that the O-P provided to the Company: | |||||
($ in thousands) | |||||
Current assets | $ | 23,351 | |||
Property, plant and equipment, net | 41,646 | ||||
Other Assets | 365 | ||||
Total assets | $ | 65,362 | |||
Total liabilities | $ | 17,887 | |||
Partners' capital | 47,475 | ||||
Total liabilities and partners' capital | $ | 65,362 | |||
Debt_Obligations
Debt Obligations | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Obligations [Abstract] | |||||
Debt Obligations | NOTE 9: DEBT OBLIGATIONS | ||||
Debt obligations consisted of the following as of December 31: | |||||
As of December 31, | |||||
($ in thousands) | 2014 | 2013 | |||
Short-term debt: | |||||
Capital leases and other borrowings, current portion | $ | 325 | $ | 428 | |
TriState credit line | - | 9,698 | |||
325 | 10,126 | ||||
Long-term debt: | |||||
Capital leases and other borrowings | 295 | 297 | |||
Total debt obligations | $ | 620 | $ | 10,423 | |
On March 11, 2013, the Company entered into a credit agreement with TriState Capital Bank ("TriState") to provide for borrowings up to $17.0 million (the "Credit Agreement"). The TriState borrowings bore interest at a variable rate based on either LIBOR or a Base Rate, as defined in the Credit Agreement, plus an applicable margin of 3.50% or 2.00%, respectively. All borrowings were to become due and payable on June 30, 2014. | |||||
Under the terms of the Credit Agreement, the Company was required to comply with certain loan covenants, which included, but were not limited to, the achievement of certain financial ratios and certain financial reporting requirements. The Company was required to maintain a consolidated liquidity ratio, as defined in the Credit Agreement, in excess of 1.0 to 1.0. The Company was required to obtain the consent of TriState prior to agreeing to any amendment to agreements between the Company and the O-P. The Company's obligations under the Credit Agreement were secured by all of the Company's assets and guaranteed by all of the Company's wholly-owned subsidiaries except for the Company's ILEC subsidiary. The ILEC subsidiary entered into a negative pledge agreement with TriState whereby the ILEC subsidiary agreed not to pledge any of its assets as collateral or lien to be placed on any of its assets. | |||||
On April 30, 2014, the Company sold its ownership interest in the O-P (see Note 8) and a portion of the proceeds was used to repay all of the outstanding borrowings under the Credit Agreement. | |||||
On June 1, 2014, the Company reduced the borrowing capacity under the Credit Agreement from a ceiling of $17.0 million to a ceiling of $5.0 million. On June 30, 2014, the Credit Agreement was amended to extend the expiration of the Credit Agreement from June 30, 2014 to October 8, 2014. The Company's Credit Agreement expired on October 8, 2014. On November 7, 2014, the Company entered into a demand line of credit with TriState (the "Demand Line of Credit") to allow for borrowings up to $5.0 million. The Company borrows or repays its debt as needed based upon its working capital obligations. It is up to the discretion of TriState to approve borrowings within the allowed line of credit limit and TriState may, at any time, demand that the Company make payment on an outstanding balance. The Company was previously required to comply with certain loan covenants and restrictions under its prior Credit Agreement. There are no financial covenants under the Demand Line of Credit. As of December 31, 2014, the Company did not have any outstanding balance under the Demand Line of Credit. | |||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Income Taxes | NOTE 10: INCOME TAXES | ||||||
The federal and state components of the provision for income taxes are presented in the following table: | |||||||
For the Years Ended December 31, | |||||||
2014 | 2013 | ||||||
($ in thousands) | |||||||
Current: | |||||||
Federal | $ | 15,894 | $ | 876 | |||
State and local | 111 | 22 | |||||
16,005 | 898 | ||||||
Deferred: | |||||||
Federal | 160 | 463 | |||||
State and local | 22 | 81 | |||||
182 | 544 | ||||||
Provision for income taxes | $ | 16,187 | $ | 1,442 | |||
Deferred income taxes arise because of differences in the book and tax basis of certain assets and liabilities and tax credit and operating loss carry forwards. Deferred income tax assets and liabilities consist of the following: | |||||||
As of December 31, | |||||||
($ in thousands) | 2014 | 2013 | |||||
Deferred income tax assets: | |||||||
Employee pensions and other benefits | $ | 3,289 | $ | 2,226 | |||
State net operating loss carryforwards | 1,190 | 1,040 | |||||
Equity compensation expense | 293 | 563 | |||||
Intangible assets | 932 | 785 | |||||
Other | 594 | 756 | |||||
Total deferred income tax assets | 6,298 | 5,370 | |||||
Valuation allowance | (4,247 | ) | (3,163 | ) | |||
Deferred income tax liabilities: | |||||||
Property, plant and equipment | 1,962 | 2,001 | |||||
Tax amortizable goodwill | 723 | 541 | |||||
Other | 89 | 206 | |||||
Total deferred income tax liabilities | 2,774 | 2,748 | |||||
Net deferred income tax liabilities | $ | (723 | ) | $ | (541 | ) | |
Based on a current evaluation of expected future taxable income, the Company determined it is not more-likely-than-not that all deferred tax assets will be realized. Therefore, the Company maintained a valuation allowance against its deferred tax assets as of December 31, 2014 and 2013. | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible and the tax credits and loss carryforwards are available to reduce taxable income. In making its assessment, the Company considered all sources of taxable income including carryback potential, future reversals of existing deferred tax liabilities, prudent and feasible tax planning strategies, and lastly, objectively verifiable projections of future taxable income exclusive of reversing temporary differences and carryforwards. At December 31, 2014 and 2013, the Company concluded that its existing deferred tax liabilities represented a source of taxable income to realize its deferred tax assets, exclusive of the deferred tax liability associated with tax amortizable goodwill. At December 31, 2014 and 2013, projections of future taxable income did not provide an additional source of income in the evaluation of the realization of deferred tax assets. Carryback potential and prudent and feasible tax planning strategies did not provide a source of taxable income in either 2014 or 2013. The Company will continue to assess all available evidence during future periods to evaluate the realization of its deferred tax assets. | |||||||
The following summarizes the changes in the Company's valuation allowance on deferred tax assets for the period indicated: | |||||||
2014 | 2013 | ||||||
Balance at the beginning of the period | $ | 3,163 | $ | 3,198 | |||
Amounts charged to expense | 160 | 874 | |||||
Other increases (decreases) | 924 | (909 | ) | ||||
Balance at the end of the period | $ | 4,247 | $ | 3,163 | |||
For the year ended December 31, 2014, the net increase in the Company's deferred tax assets related principally to its unfunded postretirement liability and the corresponding increase to the valuation allowance has been recorded within other comprehensive income/(loss). The Company recorded a charge to income of $0.2 million to increase the valuation allowance on the remaining net deferred tax assets at December 31, 2014. | |||||||
For the year ended December 31, 2013, the net decrease in the Company's deferred tax assets related principally to its unfunded postretirement liability and the corresponding decrease to the valuation allowance has been recorded within other comprehensive income/(loss). The Company recorded a charge to income of $0.9 million to increase the valuation allowance on the remaining net deferred tax assets at December 31, 2013. | |||||||
The difference between tax expense (benefit) and the amount computed by applying the statutory federal income tax rate (34%) to income (loss) before income taxes is as follows: | |||||||
Years Ended December 31, | |||||||
($ in thousands) | 2014 | 2013 | |||||
Statutory rate applied to pre-tax income | $ | 15,967 | $ | 271 | |||
Add (deduct): | |||||||
State income taxes, net | (119 | ) | 192 | ||||
Valuation allowance | 160 | 874 | |||||
Equity compensation write-off | 108 | 94 | |||||
Permanent differences and other | 71 | 11 | |||||
Income taxes | $ | 16,187 | $ | 1,442 | |||
Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company has concluded that there are no uncertain tax positions requiring recognition in its consolidated financial statements as of December 31, 2014 and 2013. | |||||||
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. For the years ended December 31, 2014 and 2013, there was no interest expense relating to unrecognized tax benefits. | |||||||
The Company had state net operating loss carry-forwards in the amount of approximately $21.8 million as of December 31, 2014. These losses expire through 2034. | |||||||
The Company and its subsidiaries file a U.S. federal consolidated income tax return. The U.S. federal statute of limitations remains open for the years 2011 and thereafter State income tax returns are generally subject to examination for a period of 3 to 5 years after filing the respective return. The impact of any federal changes on state returns remains subject to examination by the relevant states for a period of up to one year after formal notification to the states. The Company is currently under audit in the state of New Jersey for the years ended December 31, 2009 through December 31, 2012. | |||||||
Pension_Plans_And_Other_Postre
Pension Plans And Other Postretirement Benefits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Pension Plans And Other Postretirement Benefits [Abstract] | |||||||||||||
Pension Plans And Other Postretirement Benefits | NOTE 11: PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||
The Company has two defined benefit pension plans covering certain management and non-management employees who reached at least 21 years of age and have completed one year of service before the plan was frozen with respect to benefit accruals and new eligibility. The non-management plan was frozen as of May 1, 2003 and the management plan was frozen as of March 1, 2005. For an eligible employee, benefits are based on years of service and the average of the employee's three highest consecutive years' of base compensation for years prior to the date on which the plan was frozen. The Company's policy is to fund the minimum required contribution disregarding any credit balance arising from excess amounts contributed in the past. | |||||||||||||
The Company sponsors a postretirement medical benefit plan that covers all employees that retire directly from active service on or after age 55 with at least 10 years of service. The projected unit credit actuarial method was used in determining the cost of future benefits. Assets of the plan are principally invested in fixed income securities and a money market fund. The Company uses an annual measurement date of December 31 for all of its benefit plans. | |||||||||||||
The components of the pension and postretirement expense (credit) for the years ended December 31 are as follows: | |||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Components of net periodic costs: | |||||||||||||
Service cost | $ | - | $ | - | $ | 12 | $ | 13 | |||||
Interest cost | 806 | 756 | 119 | 112 | |||||||||
Expected return on plan assets | (892 | ) | (975 | ) | (32 | ) | (178 | ) | |||||
Amortization of prior service cost | 56 | 56 | (197 | ) | (330 | ) | |||||||
Recognized actuarial gain | 662 | 840 | 24 | 37 | |||||||||
Net periodic loss (gain) | $ | 632 | $ | 677 | $ | (74 | ) | $ | (346 | ) | |||
The amortization of prior service cost and recognized actuarial (gain) loss included in pension and postretirement expense represent reclassifications out of other comprehensive income (loss). | |||||||||||||
The estimated amounts for the defined benefit pension plans and the postretirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost (income) over the next fiscal year are as follows: | |||||||||||||
Postretirement | |||||||||||||
($ in thousands) | Pension Plans | Benefits | |||||||||||
Amortization of net actuarial loss | $ | 947 | $ | 78 | |||||||||
Amortization of prior service cost (credit) | $ | 56 | $ | (45 | ) | ||||||||
The following table presents a summary of the projected benefit obligation and assets of the plans at December 31: | |||||||||||||
Postretirement | |||||||||||||
($ in thousands) | Pension Benefits | Benefits | |||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Change in Benefit Obligation | |||||||||||||
Benefit obligation, beginning of year | $ | 18,493 | $ | 19,908 | $ | 2,842 | $ | 3,655 | |||||
Service cost | - | - | 12 | 13 | |||||||||
Interest cost | 806 | 756 | 119 | 112 | |||||||||
Actuarial losses (income) | 2,918 | (1,240 | ) | 32 | (805 | ) | |||||||
Benefit payments | (979 | ) | (931 | ) | (141 | ) | (133 | ) | |||||
Benefit obligation, end of year | 21,238 | 18,493 | 2,864 | 2,842 | |||||||||
Changes in fair value of plan assets | |||||||||||||
Fair value of plan assets, beginning of year | 13,116 | 12,443 | 2,206 | 2,221 | |||||||||
Actual return on plan | 825 | 1,084 | (57 | ) | (16 | ) | |||||||
Employer contributions | 219 | 520 | 85 | 134 | |||||||||
Benefit payments | (979 | ) | (931 | ) | (141 | ) | (133 | ) | |||||
Fair value of plan assets, end of year | 13,181 | 13,116 | 2,093 | 2,206 | |||||||||
Unfunded status, end of year | $ | (8,057 | ) | $ | (5,377 | ) | $ | (771 | ) | $ | (636 | ) | |
Amounts recognized in the consolidated balance sheets consisted of the following: | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
As of December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Pension and postretirement benefit obligations-current | $ | (234 | ) $ | (267 | ) | $ | - | $ | - | ||||
Pension and postretirement benefit obligations-long term | (7,823 | ) | (5,110 | ) | (771 | ) | (636 | ) | |||||
Total | $ | (8,057 | ) $ | (5,377 | ) | $ | (771 | ) $ | (636 | ) | |||
The Company also has deferred compensation agreements in place with certain former officers that became effective upon retirement. These non-qualified plans are not currently funded and a liability representing the present value of future payments has been established, with balances of $0.3 million as of December 31, 2014 and 2013. | |||||||||||||
Amounts recognized in the accumulated other comprehensive loss consisted of the following: | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
As of December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Actuarial net loss | $ | (6,148 | ) | $ | (3,824 | ) | $ | (264 | ) | $ | (168 | ) | |
Net prior service credit | (122 | ) | (178 | ) | 310 | 507 | |||||||
Income tax expense (benefit) | (2,235 | ) | (2,235 | ) | 8 | 8 | |||||||
Total | $ | (4,035 | ) | $ | (1,767 | ) | $ | 38 | $ | 331 | |||
Actuarial assumptions used to calculate the projected benefit obligation were as follows for the years ended December 31, 2014 and 2013: | |||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Discount rate | 3.70- 3.85% | 4.50- 4.70% | 3.65 | % | 4.5 | % | |||||||
Expected return on plan assets | 7 | % | 8 | % | 1.5 | % | 8 | % | |||||
Healthcare cost trend | - | - | 7.5 | % | 8.5 | % | |||||||
Actuarial assumptions used to calculate net periodic benefit cost were as follows for the years ended December 31, 2014 and 2013: | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Discount rate | 4.5- 4.7 | % | 3.7- 3.9 | % | 4.5 | % | 3.6 | % | |||||
Expected return on assets | 7 | % | 8 | % | 1.5 | % | 8 | % | |||||
The rate of return assumption, currently 1.5% for postretirement benefit and 7% for pension benefits, estimates the portion of plan benefits that will be derived from investment return and the portion that will come directly from Company contributions. Accordingly, the Company strives to maintain an investment portfolio that generates annual returns from funds invested consistent with achieving the projected long-term rate of return required for plan assets. The decrease in the expected rate of return on plan assets for the postretirement benefit plans was due to a change in the investment strategy based on the expected utilization of plan assets. | |||||||||||||
The projected pension benefit obligation of $21.2 million at December 31, 2014 was in excess of plan assets of $13.2 million, leading to an unfunded projected benefit obligation of $8.1 million as of December 31, 2014. The projected benefit obligation of $18.5 million at December 31, 2013 was in excess of plan assets of $13.1 million, leading to an unfunded projected benefit obligation of $5.4 million as of December 31, 2013. The projected pension benefit obligation exceeded the fair value of plan assets at December 31, 2014, and the projected benefit obligation increased from the same period December 31, 2013. The Company was required to record an increase to its pension liability on its Consolidated Balance Sheet as of December 31, 2014, and the effect of this adjustment was an increase in the pension liability of $2.7 million and an increase in accumulated other comprehensive loss of $2.5 million. The increase in the projected benefit obligation was primarily attributable to a decrease in the discount rate and the adoption of new mortality tables. | |||||||||||||
The Company's postretirement plans had an unfunded projected benefit obligation of $0.8 million as of December 31, 2014. The projected benefit obligation of $2.9 million at December 31, 2014 was in excess of plan assets of $2.1 million. The Company's postretirement plans had a benefit obligation of $2.8 million as of December 31, 2013. The health care cost trend rates (representing the assumed annual percentage increase in claim costs by year) was 7.5% for the year 2014 grading down to 5% in 2021 and later by 0.5% per year. The Company's most recent actuarial calculation anticipates that this trend will continue into 2015. An increase in the assumed health care cost trend rate by 1.0% would increase the accumulated postretirement benefit obligation as of December 31, 2014 by approximately $0.3 million. A 1.0% decrease in the health care cost trend rate would decrease these components by $0.2 million. The projected postretirement benefit obligation exceeded the fair value of plan assets at December 31, 2014, and the projected benefit obligation increased from the same period December 31, 2013. The Company was required to record an increase to its postretirement liability on its Consolidated Balance Sheet as of December 31, 2014 and the effect of this adjustment was an increase in the postretirement liability of $0.1 million and an decrease in accumulated other comprehensive income of $0.1 million. | |||||||||||||
On December 8, 2003, the Medicare Prescription Drug Improvement Modernization Act of 2003 (the "Act") was signed into law. The Act introduces a prescription drug benefit under Medicare Part D, as well as a federal subsidy to sponsors of retiree health care benefit plans that provide benefits at least actuarially equivalent to Medicare Part D. The Company has not applied for a subsidy as it has not done an assessment to determine if it is actuarially equivalent to Medicare Part D under the Act. Therefore, a subsidy is not included in the actuarial assumptions for its postretirement benefits plan. | |||||||||||||
Plan Assets | |||||||||||||
The Company diversifies its pension and postretirement plan assets across domestic and international common stock and fixed income asset classes. | |||||||||||||
As of December 31, 2014, the current target allocations for pension and postretirement plan assets are 50-60% for equity securities, 40-50% for fixed income securities and 0-10% for cash and certain other investments. | |||||||||||||
The fair values of the Company's pension plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Equity securities | $ | 6,394 | $ | 6,394 | $ | - | $ | - | |||||
Fixed income securities | 6,426 | 6,426 | - | - | |||||||||
Cash and cash equivalents | 361 | 361 | - | - | |||||||||
Total pension assets | $ | 13,181 | $ | 13,181 | $ | - | $ | - | |||||
The fair values of the Company's postretirement plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Fixed income securities | $ | 1,770 | $ | 1,770 | $ | - | $ | - | |||||
Cash and cash equivalents | 323 | 323 | - | - | |||||||||
Total pension assets | $ | 2,093 | $ | 2,093 | $ | - | $ | - | |||||
The fair values of the Company's pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Equity securities | $ | 6,777 | $ | 1,361 | $ | 5,416 | $ | - | |||||
Fixed income securities | 5,528 | 4,605 | 923 | - | |||||||||
Cash and cash equivalents | 811 | 811 | - | - | |||||||||
Total pension assets | $ | 13,116 | $ | 6,777 | $ | 6,339 | $ | - | |||||
The fair values of the Company's postretirement plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Fixed income securities | $ | 1,744 | $ | 1,744 | $ | - | $ | - | |||||
Cash and cash equivalents | 462 | 462 | - | - | |||||||||
Total pension assets | $ | 2,206 | $ | 2,206 | $ | - | $ | - | |||||
Equity securities and fixed income securities categorized as Level 1 represent mutual funds that are traded on national and international exchanges and are valued at their closing prices on the last trading day of the year. Additionally, some equity securities and fixed income securities are public investment vehicles valued using the Net Asset Value ("NAV") provided by the fund manager. The NAV is the total value of the fund divided by the number of shares outstanding. As the underlying securities to these funds are nationally traded and these funds do not have redemption restrictions, they are categorized as Level 2. | |||||||||||||
In accordance with its contribution policy, in 2015 the Company expects to make the required contribution of $0.2 million to its pension plan. | |||||||||||||
Benefit payments, under the provisions of the plans, are expected to be paid as follows: | |||||||||||||
Pension | Postretirement | ||||||||||||
($ in thousands) | Benefits | Benefits | |||||||||||
2015 | $ | 1,094 | $ | 176 | |||||||||
2016 | 1,107 | 153 | |||||||||||
2017 | 1,153 | 160 | |||||||||||
2018 | 1,201 | 158 | |||||||||||
2019 | 1,239 | 172 | |||||||||||
2020-2023 | 6,185 | 916 | |||||||||||
The Company also has a defined contribution 401(k) Profit Sharing Plan covering certain eligible employees. Under the plan, employees may contribute up to 100% of compensation not to exceed certain legal limitations. The Company matches 100% of the participant's contributions, up to either 4.0% or 4.5% of compensation, as set forth in the plan. The Company contributed and expensed $0.4 million for the years ended December 31, 2014 and 2013. | |||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Stock Based Compensation [Abstract] | ||||||||
Stock Based Compensation | NOTE 12: STOCK BASED COMPENSATION | |||||||
The Company has a shareholder approved long-term incentive plan (the "LTIP") to assist the Company and its affiliates in attracting, motivating and retaining selected individuals to serve as employees, directors, consultants and advisors of the Company and its affiliates by providing incentives to such individuals through the ownership and performance of the Company's common stock. There are 1.1 million shares of common stock authorized for issuance under the LTIP. Shares available for grant under the LTIP may be either authorized, but unissued shares or shares that have been reacquired by the Company and designated as treasury shares. As of December 31, 2014 and December 31, 2013, 420,392 and 57,923 shares, respectively, of the Company's common stock were available for grant under the LTIP. The LTIP permits the issuance by the Company of awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units and performance shares. The exercise price per share of the Company's common stock purchasable under any stock option or stock appreciation right may not be less than 100% of the fair market value of one share of common stock on the date of grant. The term of any stock option or stock appreciation right may not exceed ten years. The LTIP also provides plan participants with a cashless mechanism to exercise their stock options. Issued restricted stock, stock options and restricted stock units are subject to vesting restrictions. | ||||||||
Restricted Stock Awards | ||||||||
The following table summarizes the restricted stock granted to certain eligible participants for the years ended December 31, 2014, and 2013: | ||||||||
Restricted stock granted | 2014 | 2013 | ||||||
Shares | 22,508 | 420,824 | ||||||
Grant date weighted average fair value per share | $ | 8.4 | $ | 10.19 | ||||
Stock-based compensation expense for restricted stock awards of $0.8 million and $1.4 million was recorded for the years ended December 31, 2014 and 2013, respectively. The Company records stock-based compensation for grants of restricted stock awards on a straight-line basis over their respective vesting periods of two or three years. The Company has determined expected forfeitures based on recent activity and is recognizing compensation expense only for those restricted common shares expected to vest. | ||||||||
The following table summarizes the restricted common stock activity during the year ended December 31, 2014: | ||||||||
31-Dec-14 | ||||||||
Weighted | ||||||||
Average Fair | ||||||||
Shares | Value | |||||||
Balance - nonvested at January 1, 2014 | 409,889 | $ | 10.33 | |||||
Granted | 22,508 | 8.4 | ||||||
Vested | (140,476 | ) | 10.36 | |||||
Forfeited | (167,343 | ) | 10.41 | |||||
Balance - nonvested at December 31, 2014 | 124,578 | $ | 9.84 | |||||
The total fair value of the restricted shares vested for the years ended December 31, 2014 and 2013 were $1.5 million and $0.5 million, respectively. | ||||||||
Stock Options | ||||||||
The following tables summarize stock option activity for the year ended December 31, 2014, along with options exercisable at the end of the year: | ||||||||
For the Year Ended | ||||||||
31-Dec-14 | ||||||||
Weighted | ||||||||
Average | ||||||||
Weighted | Remaining | |||||||
Average | Contractual | |||||||
Shares | Exercise Price | Life (Years) | ||||||
Outstanding - Beginning of period | 499,542 | $ | 11.78 | |||||
Forfeited or expired | (172,539 | ) | 11.03 | |||||
Outstanding - End of period | 327,003 | $ | 12.18 | 6.54 | ||||
Vested and Expected to Vest at December 31, 2014 | 310,653 | |||||||
Exercisable at December 31, 2014 | 229,480 | |||||||
Stock-based compensation expense for stock option awards was de minimis and $0.1 million for the years ended December 31, 2014 and 2013, respectively. The Company records stock-based compensation for grants of stock options awards on a straight-line basis over their respective vesting periods of three years. The Company has determined expected forfeitures based on recent activity and is recognizing compensation expense only for those stock option awards expected to vest. The total fair value of the stock options vested for both years ended December 31, 2014 and 2013 were $1.7 million. | ||||||||
The following table summarizes information about fixed price stock options outstanding at December 31, 2014: | ||||||||
Weighted Average | ||||||||
Weighted | Remaining | Aggregate | ||||||
Shares | Average | Contractual | Intrinsic | |||||
Exercise Price per Share | Outstanding | Exercise Price | Life (Years) | Value | ||||
31-Dec-14 | ||||||||
$ | 9.90- 10.80 | 167,425 | $ | 10.02 | 6.93 | |||
$ | 12.88- 12.97 | 20,400 | $ | 12.89 | 4.75 | |||
$ | 14.38- 14.85 | 139,178 | $ | 14.67 | 6.33 | |||
327,003 | $ | 12.18 | 6.54 | $ | - | |||
Vested and expected to vest at December 31, 2014 | 310,653 | $ | 12.18 | 6.54 | $ | - | ||
Exercisable at December 31, 2014 | 229,480 | $ | 13.03 | 6.09 | $ | - | ||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on December 31, 2014, and the exercise price times the number of shares) that would have been received by the option holders had all the option holders exercised in-the-money stock options on December 31, 2014. This amount will change based on the fair market value of the Company's common stock. No options were exercised for the years ended December 31, 2014 and 2013. | ||||||||
The fair value of the above stock-based awards was estimated using the Black-Scholes model. No options were granted in the year ended December 31, 2014. The following weighted-average assumptions were used for the year ended December 31, 2013: | ||||||||
For the Year Ended | ||||||||
31-Dec-13 | ||||||||
Expected life (in years) | 6 | |||||||
Interest rate | 0.97 | % | ||||||
Volatility | 27.89 | % | ||||||
Dividend yield | 10.78 | % | ||||||
Weighted-average fair value per share at grant date | $ | 0.5 | ||||||
The following table presents the total stock-based compensation expense resulting from stock options and restricted stock granted to employees that are included in the Company's consolidated statements of operations for the years ended December 31, 2014 and 2013. | ||||||||
For the Years Ended December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Cost of services and products | $ | - | $ | 6 | ||||
Selling, general and administrative expense | 767 | 1,451 | ||||||
$ | 767 | $ | 1,457 | |||||
As of December 31, 2014, $0.7 million of total unrecognized compensation expense related to stock options and restricted stock is expected to be recognized over a weighted average period of approximately 1.74 years. | ||||||||
Shareholder Rights Plan | ||||||||
On September 2, 2014, in connection with an unsolicited, non-binding acquisition proposal, the Company's Board of Directors (the "Alteva Board") adopted a Stockholder Rights Plan that provides for the distribution of one right for each share of common stock outstanding. Each right entitles the holder to purchase one one-thousandth (1/1000th) of a share of Series A Junior Participating Preferred Stock, par value of $0.01 per share, of the Company (the "Preferred Stock") at a price of $22.20 per one-thousandth of a share of Preferred Stock, subject to adjustment. The rights generally become distributed and exercisable at the discretion of the Alteva Board following a public announcement that 20% or more of the Company's common stock has been acquired or an intent to acquire has become apparent. The rights will expire on September 1, 2015, unless the final expiration date is advanced or extended or unless the rights are earlier redeemed or exchanged by the Company. Further description and terms of the rights are set forth in the Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC. As of December 31, 2014, the Company is not aware of the occurrence of any events that would trigger the rights under the plan. | ||||||||
Share Repurchase Program | ||||||||
On August 25, 2014, the Alteva Board authorized a repurchase program for up to $3.0 million of its common stock. Share purchases may take place in open market transactions or in privately negotiated transaction and may be made from time to time depending on market conditions, share price, trading volume and other factors. The repurchase program authorized by the Alteva Board does not require the Company to acquire a specific number of shares, and may be terminated, suspended, or modified at any time. The timing and actual number of shares repurchased, if any, will depend on a variety of factors including the market price of the Company's common stock, regulatory, legal and contractual requirements, and other market factors. The share repurchase is expected to be funded from available cash on hand. | ||||||||
As of December 31, 2014, the Company repurchased 9,600 shares under the repurchase program at a value of $0.1 million. Shares were purchased on the open market at the prevailing days' stock price, plus transaction costs. | ||||||||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings (Loss) Per Share [Abstract] | |||||||
Earnings (Loss) Per Share | NOTE 13: EARNINGS (LOSS) PER SHARE | ||||||
Basic earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) | |||||||
applicable to common stock by the weighted average number of shares of common stock adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and shares of unvested restricted stock. Diluted earnings (loss) per share excludes all dilutive securities if their effect is anti-dilutive. | |||||||
The Company's restricted stock awards are considered "participating securities" because they contain non-forfeitable rights to dividends. Under the two-class method, earnings per share ("EPS") is computed by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, earnings are allocated to both shares of common stock and participating securities based on their respective weighted-average shares outstanding for the period. | |||||||
For the year ended December 31, 2013, the Company experienced a net loss. As a result, the effect of participating securities was excluded from the computation of basic and diluted EPS. The net losses were not allocated because the restricted stockholders are not required to fund losses. | |||||||
The weighted average number of shares of common stock used in basic and diluted earnings per share for the years ended December 31, 2014 and 2013, were as follows: | |||||||
For the Years Ended December 31, | |||||||
(amounts in thousands, except for per share) | 2014 | 2013 | |||||
NUMERATOR: | |||||||
Net income (loss) applicable to common stock and participating securities | $ | 29,409 | $ | (671 | ) | ||
Less: income applicable to participating securities (1) | (1,026 | ) | - | ||||
Net income (loss) applicable to common stock | $ | 28,383 | $ | (671 | ) | ||
DENOMINATOR: | |||||||
Weighted average shares outstanding - Basic and Diluted (2) | 5,808 | 6,112 | |||||
EPS: | |||||||
Net income (loss) per share - Basic and Diluted | $ | 4.89 | $ | (0.11 | ) | ||
(1) | For the years ended December 31, 2014 and 2013, the Company had 0.2 million and 0.3 million, respectively, of nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the year ended December 31, 2013. | ||||||
(2) | For the years ended December 31, 2014 and 2013, 0.2 million potentially dilutive shares related to out of the money common stock options were excluded from EPS, as their effect was anti-dilutive. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | NOTE 14: SHAREHOLDERS' EQUITY |
The Company has 10,000,000 authorized shares of common stock at a par value of $0.01; 5,000 authorized preferred shares at a par value of $100; and 10,000,000 authorized shares of preferred stock at a par value of $0.01. | |
The holders of the Company's preferred stock are entitled to dividends of 5% per annum, payable quarterly. The Company declared dividends per common share of $0.54 for the year ended December 31, 2013. No dividends were declared on common stock for the year ended December 31, 2014. | |
Segment_Information
Segment Information | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Information [Abstract] | ||||||||
Segment Information | NOTE 15: SEGMENT INFORMATION | |||||||
The Company's two segments, UC and Telephone, are strategic business units that offer different products and services. The Company evaluates the performance of its two segments based upon factors such as revenue growth, expense containment, market share and operating results. | ||||||||
The UC segment is a premier provider of hosted Unified Communications as a Service ("UCaaS") including VoIP, hosted Microsoft communication services, fixed mobile convergence and advanced voice applications for a broad customer base including, medium and large-sized businesses and enterprise business customers. | ||||||||
The Telephone segment operates as an ILEC in southern Orange County, New York and northern New Jersey. The Telephone segment consists of providing local and toll telephone service, high-speed broadband and fiber Internet access services and satellite video services to residential and business customers. The ILEC service areas are primarily rural and have an estimated population of 50,000. The Company also operates as a CLEC in in Middletown, New York, Scotchtown, New York and Vernon, New Jersey. | ||||||||
The segment results presented below are not necessarily indicative of the results of operations these segments would have achieved had they operated as stand-alone entities during the periods presented. All intersegment transactions are shown net of eliminations. | ||||||||
Segment income statement information for the years ended December 31, 2014 and 2013 is set forth below: | ||||||||
For the Year Ended December 31, 2014 | ||||||||
` | UC | Telephone | Consolidated | |||||
Operating Revenues | $ | 16,989 | $ | 13,116 | $ | 30,105 | ||
Operating Expenses | ||||||||
Cost of services and products | 7,784 | 4,007 | 11,791 | |||||
Selling, general and administrative expense | 13,199 | 7,567 | 20,766 | |||||
Depreciation and amortization | 1,934 | 1,530 | 3,464 | |||||
Loss on disposal, restructuring costs and other special charges | 392 | 308 | 700 | |||||
Total Operating Expenses | 23,309 | 13,412 | 36,721 | |||||
Operating Loss | (6,320 | ) | (296 | ) | (6,616 | ) | ||
Interest income (expense), net | (162 | ) | ||||||
Income from investment | 52,373 | |||||||
Other income (expense), net | 26 | |||||||
Income (loss) before income taxes | $ | 45,621 | ||||||
For the Year Ended December 31, 2013 | ||||||||
` | UC | Telephone | Consolidated | |||||
Operating Revenues | $ | 15,834 | $ | 14,268 | $ | 30,102 | ||
Operating Expenses | ||||||||
Cost of services and products | 8,798 | 4,667 | 13,465 | |||||
Selling, general and administrative expense | 15,602 | 8,387 | 23,989 | |||||
Depreciation and amortization | 2,287 | 1,528 | 3,815 | |||||
Loss on disposal, restructuring costs and other special charges | 447 | - | 447 | |||||
Total Operating Expenses | 27,134 | 14,582 | 41,716 | |||||
Operating Loss | (11,300 | ) | (314 | ) | (11,614 | ) | ||
Interest income (expense), net | (756 | ) | ||||||
Income from investment | 13,000 | |||||||
Other income (expense), net | 166 | |||||||
Income (loss) before income taxes | $ | 796 | ||||||
Segment selected balance sheet information as of December 31, 2014 and 2013 is set forth below: | ||||||||
As of December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Assets | ||||||||
Unified Communications | $ | 20,789 | $ | 21,884 | ||||
Telephone | 36,329 | 15,379 | ||||||
Total assets | $ | 57,118 | $ | 37,263 | ||||
Segment capital expenditures, including purchases of seat licenses and other acquired intangibles, for the years ended December 31, 2014 and 2013 is set forth below: | ||||||||
For the Years Ended December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Unified Communications | $ | 809 | $ | 921 | ||||
Telephone | 214 | 451 | ||||||
Total capital expenditures | $ | 1,023 | $ | 1,372 |
Quarterly_Information
Quarterly Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Information [Abstract] | ||||||||||||||||
Quarterly Information | NOTE 16: QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||
Calendar Year Quarters | ||||||||||||||||
($ and shares in thousands) | First | Second | Third | Fourth | Total(2) | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 7,524 | $ | 7,604 | $ | 7,571 | $ | 7,406 | $ | 30,105 | ||||||
Operating loss | (2,229 | ) | (1,444 | ) | (1,610 | ) | (1,333 | ) | (6,616 | ) | ||||||
Net income (loss) | (249 | ) | 31,537 | (1,330 | ) | (524 | ) | 29,434 | ||||||||
Basic earnings (loss) per common share | $ | (0.04 | ) | $ | 5.19 | $ | (0.23 | ) | $ | (0.09 | ) | $ | 4.89 | |||
Diluted earnings (loss) per common share (1) | $ | (0.04 | ) | $ | 5.19 | $ | (0.23 | ) | $ | (0.09 | ) | $ | 4.89 | |||
Weighted average shares of common stock | ||||||||||||||||
used to calculate earnings per share: | ||||||||||||||||
Basic | 6,161 | 5,917 | 5,826 | 5,824 | 5,808 | |||||||||||
Diluted | 6,161 | 5,917 | 5,826 | 5,824 | 5,808 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 7,740 | $ | 7,447 | $ | 7,530 | $ | 7,385 | $ | 30,102 | ||||||
Operating loss | (4,299 | ) | (2,955 | ) | (2,099 | ) | (2,261 | ) | (11,614 | ) | ||||||
Net income (loss) | (671 | ) | (9 | ) | 343 | (309 | ) | (646 | ) | |||||||
Basic earnings (loss) per common share | $ | (0.12 | ) | $ | - | $ | 0.06 | $ | (0.05 | ) | $ | (0.11 | ) | |||
Diluted earnings (loss) per common share (1) | $ | (0.12 | ) | $ | - | $ | 0.06 | $ | (0.05 | ) | $ | (0.11 | ) | |||
Weighted average shares of common stock | ||||||||||||||||
used to calculate earnings per share: | ||||||||||||||||
Basic | 5,751 | 5,775 | 5,776 | 6,191 | 6,112 | |||||||||||
Diluted | 5,751 | 5,775 | 5,776 | 6,191 | 6,112 | |||||||||||
(1) There is no difference between basic and diluted earnings (loss) per share due to stock options being out of the money. | ||||||||||||||||
(2) For the years ended December 31, 2014 and 2013, included in operating loss and net loss is $0.7 million and $0.4 million, respectively, loss on disposal, restructuring costs and other special charges. | ||||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments And Contingencies [Abstract] | |||
Commitments And Contingencies | NOTE 17: COMMITMENTS AND CONTINGENCIES | ||
The Company is party, from time to time, to various legal proceedings, including patent infringement claims, regulatory investigations and tax examinations incidental to its business. The Company continually monitors these legal proceedings, regulatory investigations and tax examinations to determine the impact and any required accruals. | |||
On March 31, 2014, David J. Cuthbert was terminated as President and Chief Executive Officer of Alteva. The Company notified Mr. Cuthbert that his termination was for "cause" and, as such, Mr. Cuthbert was not entitled to any of the benefits provided for under his employment agreement dated March 5, 2013, including cash severance and the acceleration of vesting on any unvested equity instruments. Mr. Cuthbert disputed the Company's basis for termination and claimed that he was due his full severance benefits. | |||
As the Company did not want to incur further legal fees or the risk of distraction of a protracted legal dispute, on October 16, 2014, the Company, through mediation, entered into a settlement agreement and mutual release agreement (the "Settlement Agreement") with Mr. Cuthbert. In consideration for Mr. Cuthbert's execution of the Settlement Agreement, the Company agreed to pay to Mr. Cuthbert the amount of $0.75 million less certain taxes and withholdings, which was paid out on October 28, 2014. | |||
Total expense, net of insurance recoveries, of $0.7 million for the year ended December 31, 2014 is included in the loss on disposal, restructuring costs and other special charges line in the condensed statement of operations. | |||
During the year ended December 31, 2014, the Company was named as a party to a lawsuit from Sprint regarding a certain tariff charge (IntraMTA carrier charge) billed by Alteva, paid by Sprint over a number of years that had not previously been disputed. Sprint has filed similar lawsuits against other carriers related to the same tariff charges. The Company has filed a motion to dismiss. The | |||
amount of the claim filed by Sprint is for $0.2 million; however the Company has not been able to substantiate the basis for the claim amount and therefore, has not recorded an accrual as of December 31, 2014. | |||
The Company leases office equipment for operations as well as office space in Philadelphia, Pennsylvania. Total expenses associated with these agreements were $0.4 million and $0.5 million in 2014 and 2013, respectively. | |||
The future aggregate operating lease commitments as of December 31, 2014 were as follows: | |||
($ in thousands) | |||
2015 | $ | 366 | |
2016 | 361 | ||
2017 | 290 | ||
2018 | 209 | ||
2019 and thereafter | 1,200 | ||
Total | $ | 2,426 | |
The Company has commitments with certain vendors related to access lines and seat licenses. The future aggregate commitment for these is $3.7 million beginning in 2015 through 2017. | |||
The Company entered into capital finance agreements for $0.4 million during the years ended December 31, 2014 and 2013. Interest rates ranged 3.50% to 7.17% and maturity dates were three years for those agreements entered into during the year ended December 31, 2014. Interest rates ranged 4.678% to 8.962% and maturity dates were three years for those agreements entered into during the year ended December 31, 2013. The Company utilizes capital leases to fund equipment and software purchases. | |||
Approximately 24% of the Company's employees are represented by Local 503 of the International Brotherhood of Electrical Workers. The existing contract with the Company's union employees expires on October 31, 2016. | |||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18: SUBSEQUENT EVENTS |
Office Relocation | |
In February 2015, the Company entered into an agreement to terminate the lease for its corporate headquarters in Philadelphia, PA. As part of the agreement to terminate the lease, the Company will receive a payment of either $1.5 million or $1.25 million, depending upon the date the Company vacates the facility. At December 31, 2014, the Company had leasehold improvements and furniture and fixtures with a net book value of $0.7 million and deferred rent of $0.4 million recognized in the balance sheet related to this leased facility. In connection with the lease termination, the Company entered into a lease for a new corporate headquarters in Philadelphia, PA in February 2015. | |
Nature_Of_Operations_And_Signi1
Nature Of Operations And Significant Accounting Policies (Policy) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Nature Of Operations And Significant Accounting Policies [Abstract] | |||||||
Basis Of Presentation | Basis of Presentation | ||||||
The accompanying consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in the consolidated financial statements | |||||||
The Company's interest in the Orange County-Poughkeepsie Limited Partnership ("O-P") is accounted for under the equity method of accounting (Note 8). | |||||||
Use Of Estimates | Use of Estimates | ||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Significant estimates include, but are not limited to, depreciation and amortization expense, allowance for doubtful accounts, long-lived assets, pension and postretirement expenses, and income taxes. Actual results could differ from those estimates. | |||||||
Revenue Recognition | Revenue Recognition | ||||||
The Company derives its revenue from the sale of UC services as well as traditional telephone services. | |||||||
The Company recognizes revenue when (i) persuasive evidence of an arrangement between the Company and the customer exists, (ii) the delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales or service price is reasonably assured. Revenue is reported net of all applicable sales tax. | |||||||
UC | |||||||
The Company's UC services and solutions consist primarily of its hosted VoIP UC system, certain UC applications, and other professional services associated with the installation and activation. Additionally, the Company offers customers the ability to purchase telephone equipment from the Company directly or independently from external vendors. | |||||||
Multiple element arrangements primarily include the sale of telephone equipment, along with professional services associated with installation, activation and implementation services, as well as follow on hosting services. The Company has concluded that the separate units of accounting in these arrangements consist of (i) the telephone equipment sale and (ii) the professional services provided combined with the follow on hosting services. The professional services provided do not constitute a separate unit of accounting as they do not have value to the customer on a stand-alone basis. Arrangement consideration is allocated to the separate units of accounting based on the relative selling price. The selling price for telephone equipment is based on third-party evidence representing list prices for similar equipment when sold a stand-alone basis. The selling price for professional and hosting services is based on the Company's best estimate of selling price ("BESP"). The Company develops its BESP by considering pricing practices, margin, competition and overall market trends. | |||||||
The Company bills a portion of its monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. | |||||||
Equipment sales associated with the sale of telephone equipment are recognized upon delivery to the customer, as it is considered to be a separate earnings process. The sales are recognized on a gross basis, as the Company is considered the primary obligor in customer transactions among other considerations. Other upfront fees, excluding equipment, along with associated costs, up to but not exceeding these fees, are deferred and recognized over the estimated life of the customer relationship. The Company has estimated its customer relationship life at eight years and evaluates it periodically for continued appropriateness. | |||||||
Telephone | |||||||
Revenue is earned from monthly billings to customers for local voice services, long distance, DSL, Internet services, hardware and other services. Revenue is also derived from charges for network access to the local exchange telephone network from subscriber line charges and from contractual arrangements for services such as billing and collection and directory advertising. Revenue is recognized in the period in which service is provided to the customer. Directory advertising revenue is recorded ratably over the life of the directory. With multiple billing cycles, the Company accrues revenue earned but not yet billed at the end of a quarter. The Company also defers revenue for services billed in advance and recognizes them as income when earned. | |||||||
The Telephone segment markets competitive service bundles which may include multiple deliverables. The base bundles consist of voice services (including a business or residential phone line), calling features and long distance services and customers may choose to add Internet services to a base bundle package. Separate units of accounting within the bundled packages include voice services, long distance and Internet services. Revenue for all services included in bundles are recognized over the same service period, which is the time period in which the service is provided to the customer. | |||||||
Certain revenue is realized under pooling arrangements with other service providers and is divided among the companies based on respective costs and investments to provide the services. The companies that take part in pooling arrangements may adjust their costs and investments for a period of two years, which causes the funds distributed by the pool to be adjusted retroactively. The Company believes that recorded amounts represent reasonable estimates of the final distribution from these pools. However, to the extent that the companies participating in these pools make adjustments, there will be corresponding adjustments to the Company's recorded revenue in future periods. | |||||||
Revenue from these pooling arrangements which includes Universal Service Funds ("USF") and National Exchange Carrier Association ("NECA") pool settlements, accounted for 3% and 5% of the Company's consolidated revenues for the years ended December 31, 2014 and 2013, respectively. | |||||||
Allowance For Uncollectable Accounts | Allowance for Uncollectible Accounts | ||||||
The Company maintains allowances for estimated losses resulting from the inability of specific customers to meet their financial obligations to the Company. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on the length of time specific receivables are past due based on past experience. Uncollectible accounts are charged against the allowance for doubtful accounts and subsequent cash recoveries of previously written-off bad debts are credited to the account. The following is a schedule of allowance for uncollectible accounts for the years ended December 31, 2014 and 2013: | |||||||
2014 | 2013 | ||||||
Balance at the beginning of the year | $ | 378 | $ | 638 | |||
Additions (reductions) charges to expense | 80 | (125 | ) | ||||
Recoveries of previous write offs | 12 | 97 | |||||
Current period write offs | (68 | ) | (232 | ) | |||
Balance at the end of the year | $ | 402 | $ | 378 | |||
Advertising And Promotional Costs | Advertising and Promotional Costs | ||||||
Advertising and promotional costs are expensed as incurred. Advertising and promotional expenses were $0.8 million and $1.1 million for the years ended December 31, 2014 and 2013, respectively. | |||||||
Income Taxes | Income Taxes | ||||||
The Company records deferred taxes that arise from temporary differences between the financial statement and the tax basis of assets and liabilities. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred tax assets and deferred tax liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company's deferred taxes result principally from differences in the timing of depreciation, in the accounting for pensions and other postretirement benefits and state net operating loss carryforwards. | |||||||
The process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties, make judgments regarding outcomes and utilize estimates. Management must make judgments currently about such uncertainties and determine estimates of the Company's tax assets and liabilities. To the extent the final outcome differs, future adjustments to the Company's tax assets and liabilities may be necessary. | |||||||
The Company assesses the realizability of its deferred tax assets, taking into consideration future reversals of existing temporary differences, the Company's forecast of future taxable income, and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and the amount of, valuation allowances against the Company's deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowances may be required. | |||||||
Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. | |||||||
Property, Plant And Equipment | Property, Plant and Equipment | ||||||
The Company records property, plant and equipment at cost or fair market value for its acquired properties resulting from a business acquisition. Construction costs, labor and applicable overhead costs related to installations, and interest during construction are capitalized. Costs of maintenance and repairs of property, plant and equipment are charged to operating expense. The estimated useful life of support equipment (vehicles, office and computer equipment, furniture, etc.) ranges from 3 to 19 years. The estimated useful lives of Internet equipment ranges from 3 to 5 years. The estimated useful lives of buildings, leasehold improvements and other equipment ranges from 4 to 50 years. Depreciation expense is computed using the straight-line method. | |||||||
Materials And Supplies | Materials and Supplies | ||||||
The Company's materials and supplies are carried at average cost, net of reserves for obsolescence, and consist principally of telephone equipment, telephone pole and wiring spare parts and other ancillary equipment for resale. | |||||||
Cash And Cash Equivalents | Cash and Cash Equivalents | ||||||
The Company considers all highly liquid instruments with an initial maturity from the date of purchase of three months or less to be cash equivalents. Cash equivalents consist primarily of money market mutual funds. The Company places its cash in a limited number of financial institutions. The balances are insured by the Federal Deposit Insurance Corporation up to $0.25 million. At times, the deposits in banks may exceed the amount of insurance provided on such deposits. The Company monitors the financial health of those banking institutions. Historically, the Company has not experienced any losses on deposits. | |||||||
Fair Value Of Financial Instruments | Fair Value of Financial Instruments | ||||||
As of December 31, 2014 and 2013, the Company's financial instruments consisted of cash, cash equivalents, accounts receivable, accounts payable, and debt. The Company believes that the carrying values of cash, cash equivalents, accounts receivable and accounts payable at December 31, 2014 and 2013 approximated fair value due to their short-term maturity. Based on the borrowing rates currently available to the Company for loans of similar terms, the Company has determined that the carrying value of its debt approximates fair value. | |||||||
Goodwill | Goodwill | ||||||
Goodwill represents the excess of the purchase price of an acquired business over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. The Company tests goodwill for impairment at the reporting unit level annually on December 31, or whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If it is determined that an impairment has occurred, the Company records a write down of the carrying value and records the charge for the impairment as an operating expense during the period in which the determination is made. The Company has determined that its operating segments are the applicable reporting units because they are the lowest level at which discrete, reliable financial and cash flow information is regularly received by segment management. | |||||||
For the purpose of the goodwill impairment test, the Company can elect to perform a qualitative analysis to determine if it is more likely than not that the fair values of its reporting units are less than the respective carrying values of those reporting units. The Company elected to not perform a qualitative analysis and instead performed the first step quantitative analysis of the goodwill impairment test in the current year. The first step in the quantitative process is to compare the carrying amount of the reporting unit's net assets to the fair value of the reporting unit. If the fair value exceeds the carrying value, no further evaluation is required and no impairment loss is recognized. If the carrying amount exceeds the fair value, then the second step must be completed, which involves allocating the fair value of the reporting unit to each asset and liability, with the excess being implied goodwill. An impairment loss occurs if the amount of the recorded goodwill exceeds the implied goodwill. | |||||||
Seat Licenses And Other Intangible Assets | Seat Licenses and Other Intangible Assets | ||||||
Seat license are amortized by the straight-line method over their useful lives of 5 years. Other intangible assets that have finite useful lives are amortized by the straight-line method over their useful lives ranging from 3 to 15 years. | |||||||
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets | ||||||
The Company reviews business conditions to determine the recoverability of the carrying value of its long-lived assets, seat licenses and other intangibles on a periodic basis in order to identify business conditions that may indicate a possible impairment. The assessment for potential impairment is based primarily on the Company's ability to recover the carrying value of its long-lived assets from expected future undiscounted cash flows. If total expected future undiscounted cash flows are less than the carrying value of the assets, a loss is recognized for the difference between the fair value (computed based upon the expected market value or future discounted cash flows) and the carrying value of the assets. The Company periodically performs evaluations of the recoverability of the carrying value of its long-lived assets using gross undiscounted cash flow projections whenever events or changes in circumstances indicate an impairment. The cash flow projections include long-term forecasts of revenue growth, gross margins and capital expenditures. All of these items require significant judgment and assumptions. The Company believes its estimates are reasonable, based on information available at the time they are made. However, if the estimates of future cash flows are different, the Company may conclude that some of its long-lived assets are not recoverable, which would likely cause the Company to record a material impairment charge. Also, if future cash flows are significantly lower than projections, the Company may determine at some future date that all or a portion of its long-lived assets are not recoverable. | |||||||
Pension And Postretirement Obligations | Pension and Postretirement Obligations | ||||||
The funded status of a benefit plan, measured as the difference between plan assets at fair value and the benefit obligation is recognized in the Company's balance sheet. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. The Company is also required to recognize as a component of accumulated other comprehensive loss changes to the balances of the unrecognized prior service cost and the unrecognized actuarial loss, net of income taxes that arise during the period. The Company is also required to measure defined benefit plan assets and obligations as of the date of the Company's year-end. | |||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||
The Company measures the cost of employee services received in exchange for the award of an equity instrument based on the grant-date fair value of the award, with such cost recognized over the applicable vesting period. | |||||||
Restricted Stock | |||||||
The fair value of restricted stock is based on the closing market price of the Company's common stock on the day before the date of grant. These awards generally vest, and are settled in common stock, over a 3 year period from the date of grant. The Company recognizes compensation expense using the straight-line method over the life of the restricted stock. | |||||||
Stock Options | |||||||
The fair value of the options granted is estimated at the date of grant using the Black-Scholes option-pricing model utilizing assumptions based on historical data and current market data. The assumptions include expected term of the options, risk-free interest rate, expected volatility, and dividend yield. The expected term represents the amount of time that options granted are expected to be outstanding. The Company used the simplified method as the Company's Long-Term Incentive Plan was put in place in 2008 and does not have enough exercises to generate a historical trend. The interest rate is based on U.S. Treasury yield curve at the time of grant with a term equal to the expected term of the option. Expected volatility is estimated using historical volatility rates based on historical monthly price changes. The Company's dividend yield is based on the Company's current dividend policy. The Company recognizes compensation expense using the straight-line method over the vesting period of the options. | |||||||
Fair Value | Fair Value | ||||||
Fair value is the estimated price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required by accounting standards to provide the disclosure framework for measuring fair value and expanded disclosure about fair value measurements. Fair value measurements are classified and disclosed in one of the following categories: | |||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||
Level 2: | These are inputs, other than quoted prices that are included in Level 1, which are observable in the marketplace throughout the term of the assets or liabilities, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. | ||||||
Level 3: | Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. | ||||||
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||
The Company measured its pension and postretirement plan assets at fair value as of December 31, 2014 and 2013 (see Note 11). The Company does not have any other financial assets or liabilities measured at fair value on a recurring basis. | |||||||
Nature_Of_Operations_And_Signi2
Nature Of Operations And Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Nature Of Operations And Significant Accounting Policies [Abstract] | |||||||
Schedule Of Allowance For Uncollectible Accounts | |||||||
2014 | 2013 | ||||||
Balance at the beginning of the year | $ | 378 | $ | 638 | |||
Additions (reductions) charges to expense | 80 | (125 | ) | ||||
Recoveries of previous write offs | 12 | 97 | |||||
Current period write offs | (68 | ) | (232 | ) | |||
Balance at the end of the year | $ | 402 | $ | 378 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Goodwill And Intangible Assets[Abstract] | ||||||
Schedule Of Goodwill | ||||||
As of December 31, | ||||||
2014 | 2013 | |||||
($ in thousands) | ||||||
Beginning of year, Goodwill - Unified Communications | $ | 9,006 | $ | 9,121 | ||
Disposals | - | (115 | ) | |||
End of year, Goodwill - Unified Communications | $ | 9,006 | $ | 9,006 |
Seat_Licenses_And_Other_Intang1
Seat Licenses And Other Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Seat Licenses [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Components Of Other Intangible Assets | The components of seat licenses are as follows: | ||||||||
Gross | Accumulated | Net | |||||||
($ in thousands) | Value | Amortization | Value | ||||||
As of December 31, 2014 | |||||||||
Seat licenses | $ | 2,936 | $ | (1,393 | ) | $ | 1,543 | ||
Gross | Accumulated | Net | |||||||
($ in thousands) | Value | Amortization | Value | ||||||
As of December 31, 2013 | |||||||||
Seat licenses | $ | 2,606 | $ | (857 | ) | $ | 1,749 | ||
Schedule Of Expected Amortization Expense | |||||||||
Amount | |||||||||
Year | ($ in thousands) | ||||||||
2015 | $ | 563 | |||||||
2016 | 511 | ||||||||
2017 | 290 | ||||||||
2018 | 135 | ||||||||
2019 | 44 | ||||||||
Other Intangible Assets [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Components Of Other Intangible Assets | The components of other intangible assets are as follows: | ||||||||
Average Estimated | Gross | Accumulated | Net | ||||||
($ in thousands) | Useful Lives | Value | Amortization | Value | |||||
As of December 31, 2014 | |||||||||
Customer relationships | 8 years | $ | 5,400 | $ | (2,306 | ) | $ | 3,094 | |
Trade name | 15 years | 2,400 | (547 | ) | 1,853 | ||||
Website | 12 years | 95 | (22 | ) | 73 | ||||
Total | $ | 7,895 | $ | (2,875 | ) | $ | 5,020 | ||
Average Estimated | Gross | Accumulated | Net | ||||||
($ in thousands) | Useful Lives | Value | Amortization | Value | |||||
As of December 31, 2013 | |||||||||
Customer relationships | 8 years | $ | 5,400 | $ | (1,631 | ) | $ | 3,769 | |
Trade name | 15 years | 2,400 | (387 | ) | 2,013 | ||||
Website | 12 years | 79 | (5 | ) | 74 | ||||
Total | $ | 7,879 | $ | (2,023 | ) | $ | 5,856 | ||
Schedule Of Expected Amortization Expense | |||||||||
Amount | |||||||||
Year | ($ in thousands) | ||||||||
2015 | $ | 851 | |||||||
2016 | 849 | ||||||||
2017 | 839 | ||||||||
2018 | 839 | ||||||||
2019 | 558 |
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Property, Plant And Equipment [Abstract] | |||||
Schedule Of Property, Plant And Equipment | |||||
As of December 31, | |||||
($ in thousands) | 2014 | 2013 | |||
Land, buildings and other support equipment | $ | 10,818 | $ | 10,777 | |
Network equipment | 31,311 | 31,289 | |||
Telephone and online plant | 34,849 | 34,307 | |||
Work in process | 43 | 24 | |||
77,021 | 76,397 | ||||
Less: Accumulated depreciation | 64,637 | 62,560 | |||
Property, plant and equipment, net | $ | 12,384 | $ | 13,837 |
Severance_Tables
Severance (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Severance [Abstract] | ||||||
Schedule Of Severance Accrual | ||||||
($ in thousands) | 2014 | 2013 | ||||
Beginning balance | $ | 247 | $ | - | ||
Additional accrual | 412 | 247 | ||||
Payments | (581 | ) | - | |||
Ending balance | $ | 78 | $ | 247 |
Orange_CountyPoughkeepsie_Limi1
Orange County-Poughkeepsie Limited Partnership (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Orange County-Poughkeepsie Limited Partnership [Abstract] | |||||
Summarized O-P Income Statement Information | |||||
For the Six Months | |||||
Ended June 30, 2014 | For the Year Ended | ||||
($ in thousands) | (Unaudited) | 31-Dec-13 | |||
Net revenue | $ | 170,746 | $ | 331,278 | |
Cellular service cost | 80,051 | 156,699 | |||
Operating expenses | 44,726 | 84,927 | |||
Operating income | 45,969 | 89,652 | |||
Other income | 62 | 27 | |||
Net income | $ | 46,031 | 89,679 | ||
Company share (1) | $ | 2,597 | 7,271 | ||
(1) | Company's share for the six months ended June 30, 2014 was calculated using a weighted average ownership rate of 2.673% due to the fact that the Company exercised the Put option and sold all of its ownership interest on April 30, 2014. | ||||
Summarized O-P Balance Sheet Information | |||||
($ in thousands) | |||||
Current assets | $ | 23,351 | |||
Property, plant and equipment, net | 41,646 | ||||
Other Assets | 365 | ||||
Total assets | $ | 65,362 | |||
Total liabilities | $ | 17,887 | |||
Partners' capital | 47,475 | ||||
Total liabilities and partners' capital | $ | 65,362 |
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Obligations [Abstract] | |||||
Schedule Of Debt Obligations | |||||
As of December 31, | |||||
($ in thousands) | 2014 | 2013 | |||
Short-term debt: | |||||
Capital leases and other borrowings, current portion | $ | 325 | $ | 428 | |
TriState credit line | - | 9,698 | |||
325 | 10,126 | ||||
Long-term debt: | |||||
Capital leases and other borrowings | 295 | 297 | |||
Total debt obligations | $ | 620 | $ | 10,423 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Schedule Of Components Of Income Tax Expense (Benefit) | |||||||
For the Years Ended December 31, | |||||||
2014 | 2013 | ||||||
($ in thousands) | |||||||
Current: | |||||||
Federal | $ | 15,894 | $ | 876 | |||
State and local | 111 | 22 | |||||
16,005 | 898 | ||||||
Deferred: | |||||||
Federal | 160 | 463 | |||||
State and local | 22 | 81 | |||||
182 | 544 | ||||||
Provision for income taxes | $ | 16,187 | $ | 1,442 | |||
Schedule Of Deferred Tax Assets And Liabilities | |||||||
As of December 31, | |||||||
($ in thousands) | 2014 | 2013 | |||||
Deferred income tax assets: | |||||||
Employee pensions and other benefits | $ | 3,289 | $ | 2,226 | |||
State net operating loss carryforwards | 1,190 | 1,040 | |||||
Equity compensation expense | 293 | 563 | |||||
Intangible assets | 932 | 785 | |||||
Other | 594 | 756 | |||||
Total deferred income tax assets | 6,298 | 5,370 | |||||
Valuation allowance | (4,247 | ) | (3,163 | ) | |||
Deferred income tax liabilities: | |||||||
Property, plant and equipment | 1,962 | 2,001 | |||||
Tax amortizable goodwill | 723 | 541 | |||||
Other | 89 | 206 | |||||
Total deferred income tax liabilities | 2,774 | 2,748 | |||||
Net deferred income tax liabilities | $ | (723 | ) | $ | (541 | ) | |
Schedule Of Change In Valuation Allowance | |||||||
2014 | 2013 | ||||||
Balance at the beginning of the period | $ | 3,163 | $ | 3,198 | |||
Amounts charged to expense | 160 | 874 | |||||
Other increases (decreases) | 924 | (909 | ) | ||||
Balance at the end of the period | $ | 4,247 | $ | 3,163 | |||
Schedule Of Income Tax Reconciliation | |||||||
Years Ended December 31, | |||||||
($ in thousands) | 2014 | 2013 | |||||
Statutory rate applied to pre-tax income | $ | 15,967 | $ | 271 | |||
Add (deduct): | |||||||
State income taxes, net | (119 | ) | 192 | ||||
Valuation allowance | 160 | 874 | |||||
Equity compensation write-off | 108 | 94 | |||||
Permanent differences and other | 71 | 11 | |||||
Income taxes | $ | 16,187 | $ | 1,442 |
Pension_Plans_And_Other_Postre1
Pension Plans And Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Pension Plans And Other Postretirement Benefits [Abstract] | |||||||||||||
Components Of Net Periodic Cost (Gain) | |||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Components of net periodic costs: | |||||||||||||
Service cost | $ | - | $ | - | $ | 12 | $ | 13 | |||||
Interest cost | 806 | 756 | 119 | 112 | |||||||||
Expected return on plan assets | (892 | ) | (975 | ) | (32 | ) | (178 | ) | |||||
Amortization of prior service cost | 56 | 56 | (197 | ) | (330 | ) | |||||||
Recognized actuarial gain | 662 | 840 | 24 | 37 | |||||||||
Net periodic loss (gain) | $ | 632 | $ | 677 | $ | (74 | ) | $ | (346 | ) | |||
Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) To Be Recognized Over Next Fiscal Year | |||||||||||||
Postretirement | |||||||||||||
($ in thousands) | Pension Plans | Benefits | |||||||||||
Amortization of net actuarial loss | $ | 947 | $ | 78 | |||||||||
Amortization of prior service cost (credit) | $ | 56 | $ | (45 | ) | ||||||||
Summary Of Projected Benefit Obligation And Plan Assets | |||||||||||||
Postretirement | |||||||||||||
($ in thousands) | Pension Benefits | Benefits | |||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Change in Benefit Obligation | |||||||||||||
Benefit obligation, beginning of year | $ | 18,493 | $ | 19,908 | $ | 2,842 | $ | 3,655 | |||||
Service cost | - | - | 12 | 13 | |||||||||
Interest cost | 806 | 756 | 119 | 112 | |||||||||
Actuarial losses (income) | 2,918 | (1,240 | ) | 32 | (805 | ) | |||||||
Benefit payments | (979 | ) | (931 | ) | (141 | ) | (133 | ) | |||||
Benefit obligation, end of year | 21,238 | 18,493 | 2,864 | 2,842 | |||||||||
Changes in fair value of plan assets | |||||||||||||
Fair value of plan assets, beginning of year | 13,116 | 12,443 | 2,206 | 2,221 | |||||||||
Actual return on plan | 825 | 1,084 | (57 | ) | (16 | ) | |||||||
Employer contributions | 219 | 520 | 85 | 134 | |||||||||
Benefit payments | (979 | ) | (931 | ) | (141 | ) | (133 | ) | |||||
Fair value of plan assets, end of year | 13,181 | 13,116 | 2,093 | 2,206 | |||||||||
Unfunded status, end of year | $ | (8,057 | ) | $ | (5,377 | ) | $ | (771 | ) | $ | (636 | ) | |
Schedule Of Amounts Recognized In Balance Sheet | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
As of December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Pension and postretirement benefit obligations-current | $ | (234 | ) $ | (267 | ) | $ | - | $ | - | ||||
Pension and postretirement benefit obligations-long term | (7,823 | ) | (5,110 | ) | (771 | ) | (636 | ) | |||||
Total | $ | (8,057 | ) $ | (5,377 | ) | $ | (771 | ) $ | (636 | ) | |||
Schedule Of Amounts Recognized In Other Comprehensive Income (Loss) | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
As of December 31, | |||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Actuarial net loss | $ | (6,148 | ) | $ | (3,824 | ) | $ | (264 | ) | $ | (168 | ) | |
Net prior service credit | (122 | ) | (178 | ) | 310 | 507 | |||||||
Income tax expense (benefit) | (2,235 | ) | (2,235 | ) | 8 | 8 | |||||||
Total | $ | (4,035 | ) | $ | (1,767 | ) | $ | 38 | $ | 331 | |||
Schedule Of Assumptions Used | Actuarial assumptions used to calculate the projected benefit obligation were as follows for the years ended December 31, 2014 and 2013: | ||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Discount rate | 3.70- 3.85% | 4.50- 4.70% | 3.65 | % | 4.5 | % | |||||||
Expected return on plan assets | 7 | % | 8 | % | 1.5 | % | 8 | % | |||||
Healthcare cost trend | - | - | 7.5 | % | 8.5 | % | |||||||
Actuarial assumptions used to calculate net periodic benefit cost were as follows for the years ended December 31, 2014 and 2013: | |||||||||||||
Postretirement | |||||||||||||
Pension Benefits | Benefits | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Discount rate | 4.5- 4.7 | % | 3.7- 3.9 | % | 4.5 | % | 3.6 | % | |||||
Expected return on assets | 7 | % | 8 | % | 1.5 | % | 8 | % | |||||
Schedule Of Fair Value Of Plan Assets | The fair values of the Company's pension plan assets at December 31, 2014 by asset category are as follows: | ||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Equity securities | $ | 6,394 | $ | 6,394 | $ | - | $ | - | |||||
Fixed income securities | 6,426 | 6,426 | - | - | |||||||||
Cash and cash equivalents | 361 | 361 | - | - | |||||||||
Total pension assets | $ | 13,181 | $ | 13,181 | $ | - | $ | - | |||||
The fair values of the Company's postretirement plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Fixed income securities | $ | 1,770 | $ | 1,770 | $ | - | $ | - | |||||
Cash and cash equivalents | 323 | 323 | - | - | |||||||||
Total pension assets | $ | 2,093 | $ | 2,093 | $ | - | $ | - | |||||
The fair values of the Company's pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Equity securities | $ | 6,777 | $ | 1,361 | $ | 5,416 | $ | - | |||||
Fixed income securities | 5,528 | 4,605 | 923 | - | |||||||||
Cash and cash equivalents | 811 | 811 | - | - | |||||||||
Total pension assets | $ | 13,116 | $ | 6,777 | $ | 6,339 | $ | - | |||||
The fair values of the Company's postretirement plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||
($ in thousands) | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Asset Category | |||||||||||||
Fixed income securities | $ | 1,744 | $ | 1,744 | $ | - | $ | - | |||||
Cash and cash equivalents | 462 | 462 | - | - | |||||||||
Total pension assets | $ | 2,206 | $ | 2,206 | $ | - | $ | - | |||||
Schedule Of Expected Benefit Payments | |||||||||||||
Pension | Postretirement | ||||||||||||
($ in thousands) | Benefits | Benefits | |||||||||||
2015 | $ | 1,094 | $ | 176 | |||||||||
2016 | 1,107 | 153 | |||||||||||
2017 | 1,153 | 160 | |||||||||||
2018 | 1,201 | 158 | |||||||||||
2019 | 1,239 | 172 | |||||||||||
2020-2023 | 6,185 | 916 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Stock Based Compensation [Abstract] | ||||||||
Schedule Of Restricted Stock Grants | ||||||||
Restricted stock granted | 2014 | 2013 | ||||||
Shares | 22,508 | 420,824 | ||||||
Grant date weighted average fair value per share | $ | 8.4 | $ | 10.19 | ||||
Schedule Of Restricted Stock Activity | ||||||||
31-Dec-14 | ||||||||
Weighted | ||||||||
Average Fair | ||||||||
Shares | Value | |||||||
Balance - nonvested at January 1, 2014 | 409,889 | $ | 10.33 | |||||
Granted | 22,508 | 8.4 | ||||||
Vested | (140,476 | ) | 10.36 | |||||
Forfeited | (167,343 | ) | 10.41 | |||||
Balance - nonvested at December 31, 2014 | 124,578 | $ | 9.84 | |||||
Schedule Of Stock Option Activity | ||||||||
For the Year Ended | ||||||||
31-Dec-14 | ||||||||
Weighted | ||||||||
Average | ||||||||
Weighted | Remaining | |||||||
Average | Contractual | |||||||
Shares | Exercise Price | Life (Years) | ||||||
Outstanding - Beginning of period | 499,542 | $ | 11.78 | |||||
Forfeited or expired | (172,539 | ) | 11.03 | |||||
Outstanding - End of period | 327,003 | $ | 12.18 | 6.54 | ||||
Vested and Expected to Vest at December 31, 2014 | 310,653 | |||||||
Exercisable at December 31, 2014 | 229,480 | |||||||
Schedule Of Stock Option Awards, By Exercise Price | ||||||||
Weighted Average | ||||||||
Weighted | Remaining | Aggregate | ||||||
Shares | Average | Contractual | Intrinsic | |||||
Exercise Price per Share | Outstanding | Exercise Price | Life (Years) | Value | ||||
31-Dec-14 | ||||||||
$ | 9.90- 10.80 | 167,425 | $ | 10.02 | 6.93 | |||
$ | 12.88- 12.97 | 20,400 | $ | 12.89 | 4.75 | |||
$ | 14.38- 14.85 | 139,178 | $ | 14.67 | 6.33 | |||
327,003 | $ | 12.18 | 6.54 | $ | - | |||
Vested and expected to vest at December 31, 2014 | 310,653 | $ | 12.18 | 6.54 | $ | - | ||
Exercisable at December 31, 2014 | 229,480 | $ | 13.03 | 6.09 | $ | - | ||
Schedule Of Stock Option Pricing Assumptions | ||||||||
For the Year Ended | ||||||||
31-Dec-13 | ||||||||
Expected life (in years) | 6 | |||||||
Interest rate | 0.97 | % | ||||||
Volatility | 27.89 | % | ||||||
Dividend yield | 10.78 | % | ||||||
Weighted-average fair value per share at grant date | $ | 0.5 | ||||||
Schedule Of Stock-Based Compensation Expense | ||||||||
For the Years Ended December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Cost of services and products | $ | - | $ | 6 | ||||
Selling, general and administrative expense | 767 | 1,451 | ||||||
$ | 767 | $ | 1,457 |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings (Loss) Per Share [Abstract] | |||||||
Schedule Of Weighted Average Number Of Shares Of Common Stock Used In Diluted Earnings (Loss) Per Share | |||||||
For the Years Ended December 31, | |||||||
(amounts in thousands, except for per share) | 2014 | 2013 | |||||
NUMERATOR: | |||||||
Net income (loss) applicable to common stock and participating securities | $ | 29,409 | $ | (671 | ) | ||
Less: income applicable to participating securities (1) | (1,026 | ) | - | ||||
Net income (loss) applicable to common stock | $ | 28,383 | $ | (671 | ) | ||
DENOMINATOR: | |||||||
Weighted average shares outstanding - Basic and Diluted (2) | 5,808 | 6,112 | |||||
EPS: | |||||||
Net income (loss) per share - Basic and Diluted | $ | 4.89 | $ | (0.11 | ) | ||
(1) | For the years ended December 31, 2014 and 2013, the Company had 0.2 million and 0.3 million, respectively, of nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the year ended December 31, 2013. | ||||||
(2) | For the years ended December 31, 2014 and 2013, 0.2 million potentially dilutive shares related to out of the money common stock options were excluded from EPS, as their effect was anti-dilutive. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Information [Abstract] | ||||||||
Segment Reporting Information | Segment income statement information for the years ended December 31, 2014 and 2013 is set forth below: | |||||||
For the Year Ended December 31, 2014 | ||||||||
` | UC | Telephone | Consolidated | |||||
Operating Revenues | $ | 16,989 | $ | 13,116 | $ | 30,105 | ||
Operating Expenses | ||||||||
Cost of services and products | 7,784 | 4,007 | 11,791 | |||||
Selling, general and administrative expense | 13,199 | 7,567 | 20,766 | |||||
Depreciation and amortization | 1,934 | 1,530 | 3,464 | |||||
Loss on disposal, restructuring costs and other special charges | 392 | 308 | 700 | |||||
Total Operating Expenses | 23,309 | 13,412 | 36,721 | |||||
Operating Loss | (6,320 | ) | (296 | ) | (6,616 | ) | ||
Interest income (expense), net | (162 | ) | ||||||
Income from investment | 52,373 | |||||||
Other income (expense), net | 26 | |||||||
Income (loss) before income taxes | $ | 45,621 | ||||||
For the Year Ended December 31, 2013 | ||||||||
` | UC | Telephone | Consolidated | |||||
Operating Revenues | $ | 15,834 | $ | 14,268 | $ | 30,102 | ||
Operating Expenses | ||||||||
Cost of services and products | 8,798 | 4,667 | 13,465 | |||||
Selling, general and administrative expense | 15,602 | 8,387 | 23,989 | |||||
Depreciation and amortization | 2,287 | 1,528 | 3,815 | |||||
Loss on disposal, restructuring costs and other special charges | 447 | - | 447 | |||||
Total Operating Expenses | 27,134 | 14,582 | 41,716 | |||||
Operating Loss | (11,300 | ) | (314 | ) | (11,614 | ) | ||
Interest income (expense), net | (756 | ) | ||||||
Income from investment | 13,000 | |||||||
Other income (expense), net | 166 | |||||||
Income (loss) before income taxes | $ | 796 | ||||||
Segment selected balance sheet information as of December 31, 2014 and 2013 is set forth below: | ||||||||
As of December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Assets | ||||||||
Unified Communications | $ | 20,789 | $ | 21,884 | ||||
Telephone | 36,329 | 15,379 | ||||||
Total assets | $ | 57,118 | $ | 37,263 | ||||
Segment capital expenditures, including purchases of seat licenses and other acquired intangibles, for the years ended December 31, 2014 and 2013 is set forth below: | ||||||||
For the Years Ended December 31, | ||||||||
($ in thousands) | 2014 | 2013 | ||||||
Unified Communications | $ | 809 | $ | 921 | ||||
Telephone | 214 | 451 | ||||||
Total capital expenditures | $ | 1,023 | $ | 1,372 |
Quarterly_Information_Tables
Quarterly Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Information [Abstract] | ||||||||||||||||
Schedule Of Quarterly Financial Information | ||||||||||||||||
Calendar Year Quarters | ||||||||||||||||
($ and shares in thousands) | First | Second | Third | Fourth | Total(2) | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 7,524 | $ | 7,604 | $ | 7,571 | $ | 7,406 | $ | 30,105 | ||||||
Operating loss | (2,229 | ) | (1,444 | ) | (1,610 | ) | (1,333 | ) | (6,616 | ) | ||||||
Net income (loss) | (249 | ) | 31,537 | (1,330 | ) | (524 | ) | 29,434 | ||||||||
Basic earnings (loss) per common share | $ | (0.04 | ) | $ | 5.19 | $ | (0.23 | ) | $ | (0.09 | ) | $ | 4.89 | |||
Diluted earnings (loss) per common share (1) | $ | (0.04 | ) | $ | 5.19 | $ | (0.23 | ) | $ | (0.09 | ) | $ | 4.89 | |||
Weighted average shares of common stock | ||||||||||||||||
used to calculate earnings per share: | ||||||||||||||||
Basic | 6,161 | 5,917 | 5,826 | 5,824 | 5,808 | |||||||||||
Diluted | 6,161 | 5,917 | 5,826 | 5,824 | 5,808 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 7,740 | $ | 7,447 | $ | 7,530 | $ | 7,385 | $ | 30,102 | ||||||
Operating loss | (4,299 | ) | (2,955 | ) | (2,099 | ) | (2,261 | ) | (11,614 | ) | ||||||
Net income (loss) | (671 | ) | (9 | ) | 343 | (309 | ) | (646 | ) | |||||||
Basic earnings (loss) per common share | $ | (0.12 | ) | $ | - | $ | 0.06 | $ | (0.05 | ) | $ | (0.11 | ) | |||
Diluted earnings (loss) per common share (1) | $ | (0.12 | ) | $ | - | $ | 0.06 | $ | (0.05 | ) | $ | (0.11 | ) | |||
Weighted average shares of common stock | ||||||||||||||||
used to calculate earnings per share: | ||||||||||||||||
Basic | 5,751 | 5,775 | 5,776 | 6,191 | 6,112 | |||||||||||
Diluted | 5,751 | 5,775 | 5,776 | 6,191 | 6,112 | |||||||||||
(1) There is no difference between basic and diluted earnings (loss) per share due to stock options being out of the money. | ||||||||||||||||
(2) For the years ended December 31, 2014 and 2013, included in operating loss and net loss is $0.7 million and $0.4 million, respectively, loss on disposal, restructuring costs and other special charges. | ||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments And Contingencies [Abstract] | |||
Schedule Of Future Lease Commitments | |||
($ in thousands) | |||
2015 | $ | 366 | |
2016 | 361 | ||
2017 | 290 | ||
2018 | 209 | ||
2019 and thereafter | 1,200 | ||
Total | $ | 2,426 |
Nature_Of_Operations_And_Signi3
Nature Of Operations And Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Significant Accounting Policies [Line Items] | ||
Cost adjustment period | 2 years | |
Advertising and promotional expenses | $0.80 | $1.10 |
Company's Revenues [Member] | ||
Significant Accounting Policies [Line Items] | ||
Percentage of regulatory revenue | 3.00% | 5.00% |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Minimum [Member] | Support Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum [Member] | Communication And Network Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum [Member] | Buildings And Other Support Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 4 years | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 15 years | |
Cash balance amount insured by FDIC | $0.25 | |
Maximum [Member] | Support Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 19 years | |
Maximum [Member] | Communication And Network Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 5 years | |
Maximum [Member] | Buildings And Other Support Equipment [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment estimated useful life | 50 years | |
Seat Licenses [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 5 years | |
Customer Relationships [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 8 years | 8 years |
Nature_Of_Operations_And_Signi4
Nature Of Operations And Significant Accounting Policies (Schedule Of Allowance For Uncollectible Accounts) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Nature Of Operations And Significant Accounting Policies [Abstract] | ||
Balance at the beginning of the year | $378 | $638 |
Additions (reduction) changes to expense | 80 | -125 |
Recoveries of previous write offs | 12 | 97 |
Current period write offs | -68 | -232 |
Balance at the end of the year | $402 | $378 |
Goodwill_Schedule_Of_Goodwill_
Goodwill (Schedule Of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Goodwill And Intangible Assets[Abstract] | ||
Goodwill, Beginning Balance - Unified Communications | $9,121 | $9,006 |
Disposals | -115 | |
Goodwill, Ending Balance - Unified Communications | $9,006 | $9,006 |
Seat_Licenses_And_Other_Intang2
Seat Licenses And Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Capital lease term | 3 years | |
Seat Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $0.50 | $0.50 |
Capital leases used to purchase seat licenses | 0.1 | |
Estimated useful life | 5 years | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $0.90 | $0.90 |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 15 years | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years |
Seat_Licenses_And_Other_Intang3
Seat Licenses And Other Intangible Assets (Components Of Other Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Value | $7,895 | $7,879 |
Accumulated Amortization | -2,875 | -2,023 |
Net Value | 5,020 | 5,856 |
Seat Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | |
Gross Value | 2,936 | 2,606 |
Accumulated Amortization | -1,393 | -857 |
Net Value | 1,543 | 1,749 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 8 years | 8 years |
Gross Value | 5,400 | 5,400 |
Accumulated Amortization | -2,306 | -1,631 |
Net Value | 3,094 | 3,769 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Gross Value | 2,400 | 2,400 |
Accumulated Amortization | -547 | -387 |
Net Value | 1,853 | 2,013 |
Website [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 12 years | 12 years |
Gross Value | 95 | 79 |
Accumulated Amortization | -22 | -5 |
Net Value | $73 | $74 |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years |
Seat_Licenses_And_Other_Intang4
Seat Licenses And Other Intangible Assets (Schedule Of Expected Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Seat Licenses [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | $563 |
2016 | 511 |
2017 | 290 |
2018 | 135 |
2019 | 44 |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | 851 |
2016 | 849 |
2017 | 839 |
2018 | 839 |
2019 | $558 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant And Equipment [Abstract] | ||
Depreciation | $2.10 | $2.50 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $77,021 | $76,397 |
Less: Accumulated depreciation | 64,637 | 62,560 |
Property, Plant and Equipment, Net, Total | 12,384 | 13,837 |
Land, Buildings And Other Support Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,818 | 10,777 |
Network Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 31,311 | 31,289 |
Telephone And Online Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 34,849 | 34,307 |
Work In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $43 | $24 |
Loss_On_DisposalBusiness_Restr1
Loss On Disposal/Business Restructuring (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loss On Disposal/Business Restructuring [Abstract] | ||
Proceeds from sale of assets | $33,000 | $550,000 |
Loss on sale of asssets | -400,000 | |
Write down of goodwill | $100,000 |
Severance_Details
Severance (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | 25-May-14 | 21-May-13 | Jun. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, general and administrative expenses | $20,766,000 | $23,989,000 | ||||
CAO Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued severance | 100,000 | |||||
Termination Of President And CEO [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | 500,000 | |||||
Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Workforce reduction, percentage | 7.00% | |||||
Selling, general and administrative expenses | 200,000 | |||||
Warwick New York Workforce Reduction [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Workforce reduction, percentage | 17.00% | |||||
Selling, general and administrative expenses | $300,000 |
Severance_Schedule_Of_Severanc
Severance (Schedule Of Severance Accrual) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Severance [Abstract] | ||
Beginning balance | $247 | |
Additional accrual | 412 | 247 |
Payments | -581 | |
Ending balance | $78 | $247 |
Orange_CountyPoughkeepsie_Limi2
Orange County-Poughkeepsie Limited Partnership (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Jun. 30, 2014 | |
item | |||||
Option Indexed to Issuer's Equity [Line Items] | |||||
Equity interest in O-P | 8.11% | ||||
Annual cash distributions to the Company from the O-P | $13,000,000 | ||||
Aggregate strike price | 50,000,000 | ||||
Equity method investment put option value multiplier times EBITDA | 0.081081 | ||||
Equity method investment, amount the investment account was reduced to | 0 | ||||
Income from equity investments | 52,373,000 | 13,000,000 | |||
O-P [Member] | |||||
Option Indexed to Issuer's Equity [Line Items] | |||||
Gain on sale of equity method investment | 49,800,000 | ||||
Income from equity investments | 7,271,000 | 2,597,000 | |||
Put Option [Member] | O-P [Member] | |||||
Option Indexed to Issuer's Equity [Line Items] | |||||
Proceeds on sale of ownership interest | $50,000,000 |
Orange_CountyPoughkeepsie_Limi3
Orange County-Poughkeepsie Limited Partnership (Summarized O-P Income Statement Information) (Details) (USD $) | 12 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Company's share | $52,373 | $13,000 | |
O-P [Member] | |||
Net revenue | 331,278 | 170,746 | |
Cellular service cost | 156,699 | 80,051 | |
Operating expenses | 84,927 | 44,726 | |
Operating income | 89,652 | 45,969 | |
Other income | 27 | 62 | |
Net income | 89,679 | 46,031 | |
Company's share | $7,271 | $2,597 | |
Weighted-average ownership percentage | 2.67% |
Orange_CountyPoughkeepsie_Limi4
Orange County-Poughkeepsie Limited Partnership (Summarized O-P Balance Sheet Information) (Details) (O-P [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
O-P [Member] | |
Current assets | $23,351 |
Property, plant and equipment, net | 41,646 |
Other Assets | 365 |
Total assets | 65,362 |
Total liabilities | 17,887 |
Partners' capital | 47,475 |
Total liabilities and partners' capital | $65,362 |
Debt_Obligations_Narrative_Det
Debt Obligations (Narrative) (Details) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Mar. 11, 2013 | Dec. 31, 2014 | Nov. 07, 2014 | Jun. 01, 2014 |
Line of Credit Facility [Line Items] | ||||
Consolidated liquidity ratio | 1 | |||
TriState Capital Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum | $5 | |||
Revised Ceiling [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum | 5 | |||
Maximum [Member] | TriState Capital Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate percent, plus variable rate | 3.50% | |||
Minimum [Member] | TriState Capital Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum | 17 | |||
Interest rate percent, plus variable rate | 2.00% |
Debt_Obligations_Schedule_Of_D
Debt Obligations (Schedule Of Debt Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short-term debt | $325 | $10,126 |
Capital leases and other borrowings | 295 | 297 |
Total debt obligations | 620 | 10,423 |
Capital Leases And Other Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 325 | 428 |
TriState Capital Bank [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | $9,698 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Increase in deferred tax assets | $200,000 | $900,000 | |
Statutory federal income tax rate | 34.00% | ||
Unrecognized tax benefits | 0 | 0 | |
Unrecognized tax benefits, interest expense | 0 | ||
State operating loss carryforwards | $21,800,000 | $21,800,000 | |
Period of time after formal notification | 1 year | ||
Maximum [Member] | |||
Period of tax return examination | 5 years | ||
Minimum [Member] | |||
Period of tax return examination | 3 years |
Income_Taxes_Tax_Expense_By_Ju
Income Taxes (Tax Expense By Jurisdiction) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||
Federal | $15,894 | $876 |
State and local | 111 | 22 |
Provision (benefit) for income tax | 16,005 | 898 |
Federal | 160 | 463 |
State and local | 22 | 81 |
Deferred Income Tax Expense (Benefit), Total | 182 | 544 |
Provision for (benefit from) income taxes | $16,187 | $1,442 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Income Taxes [Abstract] | |||
Employee pensions and other benefits | $3,289 | $2,226 | |
State net operating loss carryforward | 1,190 | 1,040 | |
Equity compensation expense | 293 | 563 | |
Intangible assets | 932 | 785 | |
Other | 594 | 756 | |
Total deferred income tax assets | 6,298 | 5,370 | |
Valuation allowance | -4,247 | -3,163 | -3,198 |
Property, plant and equipment | 1,962 | 2,001 | |
Tax amortizable goodwill | 723 | 541 | |
Other | 89 | 206 | |
Total deferred income tax liabilities | 2,774 | 2,748 | |
Net deferred income tax liabilities | ($723) | ($541) |
Income_Taxes_Schedule_Of_Chang
Income Taxes (Schedule Of Change In Valuation Allowance) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||
Balance at the beginning of the period | $3,163 | $3,198 |
Amounts charged to expense | 160 | 874 |
Other increases (decreases) | 924 | -909 |
Balance at the end of the period | $4,247 | $3,163 |
Income_Taxes_Schedule_Of_Incom
Income Taxes (Schedule Of Income Tax Reconciliation) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||
Statutory rate applied to pre-tax income (loss) | $15,967 | $271 |
State income taxes, net | -119 | 192 |
Valuation allowance | 160 | 874 |
Equity compensation write-off | 108 | 94 |
Permanent differences and other | 71 | 11 |
Provision for (benefit from) income taxes | $16,187 | $1,442 |
Pension_Plans_And_Other_Postre2
Pension Plans And Other Postretirement Benefits (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of defined benefit pension plan | 2 | |
Minimum age of employee to enroll in defined benefit pension plan | 21 years | |
Minimum service period required for employees to enroll in pension plan | 1 year | |
Minimum age of postretirement medical benefit plan enrollment | 55 years | |
Minimum service period of postretirement medical benefit plan enrollment | 10 years | |
Target allocations maximum | 10.00% | |
Expected contributions | $200,000 | |
Participant's contribution percentage | 100.00% | |
Employer matching contribution percentage | 100.00% | |
Company contributions | 400,000 | 400,000 |
Deferred compensation liability balance | 300,000 | 300,000 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations minimum | 50.00% | |
Target allocations maximum | 60.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations minimum | 40.00% | |
Target allocations maximum | 50.00% | |
Cash And Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations minimum | 0.00% | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of return assumption | 7.00% | 8.00% |
Projected benefit obligation | 21,200,000 | 18,500,000 |
Fair value of plan assets | 13,200,000 | 13,100,000 |
Unfunded projected benefit obligation | 8,100,000 | 5,400,000 |
Increase in pension liability | 2,700,000 | |
(Decrease) in accumulated other comprehensive income | 2,500,000 | |
Company contributions | 219,000 | 520,000 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of return assumption | 1.50% | 8.00% |
Projected benefit obligation | 2,900,000 | 2,800,000 |
Fair value of plan assets | 2,100,000 | |
Unfunded projected benefit obligation | 800,000 | |
Increase in pension liability | 100,000 | |
(Decrease) in accumulated other comprehensive income | -100,000 | |
Assumed health care cost trend rate | 7.50% | 8.50% |
Grading down rate | 5.00% | |
Percentage of health care cost trend rate grade down each year | 0.50% | |
Effect of 1.0% increase on accumulated postretirement benefit obligation | 300,000 | |
Effect of 1.0% decrease on accumulated postretirement benefit obligation | -200,000 | |
Company contributions | $85,000 | $134,000 |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of contributions matched by employer | 4.50% | |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of contributions matched by employer | 4.00% |
Pension_Plans_And_Other_Postre3
Pension Plans And Other Postretirement Benefits (Components Of Net Periodic Cost (Gain)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $806 | $756 |
Expected return on plan assets | -892 | -975 |
Amortization of prior service cost | 56 | 56 |
Recognized actuarial (gain) loss | 662 | 840 |
Net periodic benefit cost (benefit) | 632 | 677 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 12 | 13 |
Interest cost | 119 | 112 |
Expected return on plan assets | -32 | -178 |
Amortization of prior service cost | -197 | -330 |
Recognized actuarial (gain) loss | 24 | 37 |
Net periodic benefit cost (benefit) | ($74) | ($346) |
Pension_Plans_And_Other_Postre4
Pension Plans And Other Postretirement Benefits (Schedule Of Amounts In Accumulated Other Comprehensive Income (Loss) To Be Recognized Over Next Fiscal Year) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of net actuarial loss | $947 |
Amortization of prior service cost (credit) | 56 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of net actuarial loss | 78 |
Amortization of prior service cost (credit) | ($45) |
Pension_Plans_And_Other_Postre5
Pension Plans And Other Postretirement Benefits (Summary Of Projected Benefit Obligation And Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $400 | $400 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning of year | 18,493 | 19,908 |
Interest cost | 806 | 756 |
Actuarial losses (income) | 2,918 | -1,240 |
Benefit payments | -979 | -931 |
Benefit obligation, end of year | 21,238 | 18,493 |
Fair value of plan assets, beginning of year | 13,116 | 12,443 |
Actual return on plan | 825 | 1,084 |
Employer contributions | 219 | 520 |
Fair value of plan assets, end of year | 13,181 | 13,116 |
Unfunded status at end of year | -8,057 | -5,377 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning of year | 2,842 | 3,655 |
Service cost | 12 | 13 |
Interest cost | 119 | 112 |
Actuarial losses (income) | 32 | -805 |
Benefit payments | -141 | -133 |
Benefit obligation, end of year | 2,864 | 2,842 |
Fair value of plan assets, beginning of year | 2,206 | 2,221 |
Actual return on plan | -57 | -16 |
Employer contributions | 85 | 134 |
Fair value of plan assets, end of year | 2,093 | 2,206 |
Unfunded status at end of year | ($771) | ($636) |
Pension_Plans_And_Other_Postre6
Pension Plans And Other Postretirement Benefits (Schedule Of Amounts Recognized In Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and postretirement benefit obligations-current | ($276) | ($267) |
Pension and postretirement benefit obligations-long term | -8,833 | -6,007 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and postretirement benefit obligations-current | -234 | -267 |
Pension and postretirement benefit obligations-long term | -7,823 | -5,110 |
Total | -8,057 | -5,377 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and postretirement benefit obligations-long term | -771 | -636 |
Total | ($771) | ($636) |
Pension_Plans_And_Other_Postre7
Pension Plans And Other Postretirement Benefits (Schedule Of Amounts Recognized In Accumulated Other Comprehensive Income (Loss) Net Of Tax) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial net (loss) gain | ($6,148) | ($3,824) |
Net prior service credit | -122 | -178 |
Income tax expense (benefit) | -2,235 | -2,235 |
Total | -4,035 | -1,767 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial net (loss) gain | -264 | -168 |
Net prior service credit | 310 | 507 |
Income tax expense (benefit) | 8 | 8 |
Total | $38 | $331 |
Pension_Plans_And_Other_Postre8
Pension Plans And Other Postretirement Benefits (Schedule Of Actuarial Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected return on plans | 7.00% | 8.00% |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation, Discount rate | 3.65% | 4.50% |
Expected return on plans | 1.50% | 8.00% |
Projected Benefit Obligation, Healthcare cost trend | 7.50% | 8.50% |
Net Periodic Benefit Cost, Discount rate | 4.50% | 3.60% |
Maximum [Member] | Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation, Discount rate | 3.85% | 4.70% |
Net Periodic Benefit Cost, Discount rate | 4.70% | 3.90% |
Minimum [Member] | Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation, Discount rate | 3.70% | 4.50% |
Net Periodic Benefit Cost, Discount rate | 4.50% | 3.70% |
Pension_Plans_And_Other_Postre9
Pension Plans And Other Postretirement Benefits (Schedule of Pension Plan Assets By Asset Class) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $13,181 | $13,116 | $12,443 |
Pension Benefits [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,394 | 6,777 | |
Pension Benefits [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,426 | 5,528 | |
Pension Benefits [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 361 | 811 | |
Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 13,181 | 6,777 | |
Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,394 | 1,361 | |
Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,426 | 4,605 | |
Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 361 | 811 | |
Pension Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6,339 | ||
Pension Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 5,416 | ||
Pension Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 923 | ||
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,093 | 2,206 | 2,221 |
Postretirement Benefits [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,770 | 1,744 | |
Postretirement Benefits [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 323 | 462 | |
Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,093 | 2,206 | |
Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,770 | 1,744 | |
Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $323 | $462 |
Recovered_Sheet1
Pension Plans And Other Postretirement Benefits (Schedule Of Expected Benefit Payment) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $1,094 |
2016 | 1,107 |
2017 | 1,153 |
2018 | 1,201 |
2019 | 1,239 |
2020-2023 | 6,185 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 176 |
2016 | 153 |
2017 | 160 |
2018 | 158 |
2019 | 172 |
2020-2023 | $916 |
Stock_Based_Compensation_Narra
Stock Based Compensation (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
Aug. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum exercise price per share of stock options as a percentage of grant date fair market value | 100.00% | |||
Stock option or stock appreciation term, maximum | 10 years | |||
Stock-based compensation expense | $767,000 | $1,457,000 | ||
Intrinsic value of options exercised | 0 | 0 | ||
Share repurchase program, authorized amount | 3,000,000 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 800,000 | 1,400,000 | ||
Vesting period | 3 years | |||
Total fair value of vested restricted stock | 1,500,000 | 500,000 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 100,000 | 100,000 | ||
Vesting period | 3 years | |||
Total fair value of vested restricted stock | 1,700,000 | 1,700,000 | ||
Total unrecognized stock options compensation expense | 700,000 | |||
Weighted average period of recognition for total unrecognized stock options compensation expense | 1 year 8 months 27 days | |||
Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for plan | 1,100,000 | |||
Shares avaliable for grant | 420,392 | 57,923 | ||
Shareholder Rights Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred shares, par value | $0.01 | |||
Shares Issued, Price Per Share | $22.20 | |||
Percent of common stock | 20.00% | |||
Share Repurchase Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Repurchased During Period, Shares | 9,600 | |||
Stock Repurchased During Period, Value | $100,000 | |||
Minimum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Maximum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years |
Stock_Based_Compensation_Sched
Stock Based Compensation (Schedule Of Restricted Stock Grants) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation [Abstract] | ||
Restricted stock granted, Shares | 22,508 | 420,824 |
Restricted stock granted, Grant Date Fair Value per Share | $8.40 | $10.19 |
Stock_Based_Compensation_Sched1
Stock Based Compensation (Schedule Of Restricted Stock Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation [Abstract] | ||
Balance - Beginning of period, Shares | 409,889 | |
Granted, Shares | 22,508 | 420,824 |
Vested, Shares | -140,476 | |
Forfeited, Shares | -167,343 | |
Balance - End of period, Shares | 124,578 | 409,889 |
Balance - Beginning of period, Grant Date Weighted Average Price per Share | $10.33 | |
Granted, Grant Date Weighted Average per Share | $8.40 | $10.19 |
Vested, Grant Date Weighted Average per Share | $10.36 | |
Forfeited, Grant Date Weighted Average per Share | $10.41 | |
Balance - End of period, Grant Date Weighted Average Price per Share | $9.84 | $10.33 |
Stock_Based_Compensation_Sched2
Stock Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Stock Based Compensation [Abstract] | |
Outstanding - Beginning of period, Shares | 499,542 |
Forfeited or expired, Shares | -172,539 |
Outstanding - End of period, Shares | 327,003 |
Vested and Expected to Vest at December 31, 2014, shares | 310,653 |
Exercisable at December 31, 2014, Shares | 229,480 |
Outstanding - Beginning of period, Weighted Average Exercise Price | $11.78 |
Forfeited or expired, Weighted Average Exercise Price | $11.03 |
Outstanding - End of period, Weighted Average Exercise Price | $12.18 |
Outstanding - End of period, Weighted Average Contractual Life (Years) | 6 years 6 months 15 days |
Stock_Based_Compensation_Sched3
Stock Based Compensation (Schedule Of Stock Option Awards, By Exercise Price) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares Outstanding | 327,003 |
Weighted Average Exercise Price | $12.18 |
Weighted Average Contractual Life (Years) | 6 years 6 months 15 days |
Aggregate Intrinsic Value | |
Shares Outstanding, Vested and expected to vest | 310,653 |
Weighted Average Exercise Price, Vested and expected to vest | $12.18 |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 6 years 6 months 15 days |
Aggregate Intrinsic Value, Vested and expected to vest | |
Shares Outstanding, Exercisable | 229,480 |
Weighted Average Exercise Price, Exercisable | $13.03 |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 1 month 2 days |
Aggregate Intrinsic Value, Exercisable | |
$9.90 - 10.80 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower limit | $9.90 |
Exercise price per share, upper limit | $10.80 |
Shares Outstanding | 167,425 |
Weighted Average Exercise Price | $10.02 |
Weighted Average Contractual Life (Years) | 6 years 11 months 5 days |
Aggregate Intrinsic Value | |
$12.88 - 12.97 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower limit | $12.88 |
Exercise price per share, upper limit | $12.97 |
Shares Outstanding | 20,400 |
Weighted Average Exercise Price | $12.89 |
Weighted Average Contractual Life (Years) | 4 years 9 months |
Aggregate Intrinsic Value | |
$14.38 - 14.85 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower limit | $14.38 |
Exercise price per share, upper limit | $14.85 |
Shares Outstanding | 139,178 |
Weighted Average Exercise Price | $14.67 |
Weighted Average Contractual Life (Years) | 6 years 3 months 29 days |
Aggregate Intrinsic Value |
Stock_Based_Compensation_Sched4
Stock Based Compensation (Schedule Of Stock Option Pricing Assumptions) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Based Compensation [Abstract] | |
Expected life | 6 years |
Interest rate | 0.97% |
Volatility | 27.89% |
Dividend yield | 10.78% |
Weighted-average fair value per share at grant date | $0.50 |
Stock_Based_Compensation_Sched5
Stock Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $767 | $1,457 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 6 | |
Selling, General And Administrative Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $767 | $1,451 |
Earnings_Loss_Per_Share_Schedu
Earnings (Loss) Per Share (Schedule Of Weighted Average Number Of Shares Of Common Stock Used In Diluted Earnings (Loss) Per Share) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) applicable to common stock and participating securities | $29,409 | ($671) |
Less: income applicable to participated securities | -1,026 | |
Net income (loss) applicable to common stock | $28,383 | ($671) |
Weighted average shares outstanding - Basic and Diluted | 5,808,000 | 6,112,000 |
Net income (loss) per share - Basic and Diluted | $4.89 | ($0.11) |
Money Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from EPS | 200,000 | 200,000 |
Participating Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding participating securities | 200,000 | 300,000 |
Shareholders_Equity_And_Puttab
Shareholders' Equity And Puttable Common Stock (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, issued shares | 6,826,000 | 6,971,000 |
Preferred stock, dividend rate per annum | 5.00% | |
Preferred stock, dividends per share | $0.54 | |
Preferred Stock $100 Par Value [Member] | ||
Class of Stock [Line Items] | ||
Preferred shares, authorized shares | 5,000 | 5,000 |
Preferred shares, par value | $100 | $100 |
Preferred Stock $0.01 Par Value [Member] | ||
Class of Stock [Line Items] | ||
Preferred shares, authorized shares | 10,000,000 | 10,000,000 |
Preferred shares, par value | $0.01 | $0.01 |
Segment_Information_Segment_In
Segment Information (Segment Income Statement Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | $30,105 | $30,102 | ||||||||
Cost of services and products | 11,791 | 13,465 | ||||||||
Selling, general and administration expense | 20,766 | 23,989 | ||||||||
Depreciation and amortization | 3,464 | 3,815 | ||||||||
Loss on disposal, restructuring costs and other special charges | 700 | 447 | ||||||||
Total operating expenses | 36,721 | 41,716 | ||||||||
Operating loss | -6,616 | -11,614 | ||||||||
Interest income (expense), net | -162 | -756 | ||||||||
Income from investment | 52,373 | 13,000 | ||||||||
Other (expenses) income, net | 26 | 166 | ||||||||
Income before income taxes | 45,621 | 796 | ||||||||
Parent Company [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating loss | -1,333 | -1,610 | -1,444 | -2,229 | -2,261 | -2,099 | -2,955 | -4,299 | -6,616 | -11,614 |
Unified Communications [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 16,989 | 15,834 | ||||||||
Cost of services and products | 7,784 | 8,798 | ||||||||
Selling, general and administration expense | 13,199 | 15,602 | ||||||||
Depreciation and amortization | 1,934 | 2,287 | ||||||||
Loss on disposal, restructuring costs and other special charges | 392 | 447 | ||||||||
Total operating expenses | 23,309 | 27,134 | ||||||||
Operating loss | -6,320 | -11,300 | ||||||||
Telephone [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 13,116 | 14,268 | ||||||||
Cost of services and products | 4,007 | 4,667 | ||||||||
Selling, general and administration expense | 7,567 | 8,387 | ||||||||
Depreciation and amortization | 1,530 | 1,528 | ||||||||
Loss on disposal, restructuring costs and other special charges | 308 | |||||||||
Total operating expenses | 13,412 | 14,582 | ||||||||
Operating loss | ($296) | ($314) |
Segment_Information_Segment_Ba
Segment Information (Segment Balance Sheet Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Assets | $57,118 | $37,263 |
Total capital expenditures | 1,023 | 1,372 |
Unified Communications [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 20,789 | 21,884 |
Total capital expenditures | 809 | 921 |
Telephone [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 36,329 | 15,379 |
Total capital expenditures | $214 | $451 |
Quarterly_Information_Schedule
Quarterly Information (Schedule Of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment operating loss | ($6,616) | ($11,614) | ||||||||
Net income (loss) | 29,434 | -646 | ||||||||
Basic earnings (loss) per common share | $4.89 | ($0.11) | ||||||||
Diluted earnings (loss) per common share | $4.89 | ($0.11) | ||||||||
Basic | 5,808 | 6,112 | ||||||||
Diluted | 5,808 | 6,112 | ||||||||
Loss on disposal, restructuring costs and other special charges | 700 | 447 | ||||||||
Parent Company [Member] | ||||||||||
Revenue | 7,406 | 7,571 | 7,604 | 7,524 | 7,385 | 7,530 | 7,447 | 7,740 | 30,105 | 30,102 |
Segment operating loss | -1,333 | -1,610 | -1,444 | -2,229 | -2,261 | -2,099 | -2,955 | -4,299 | -6,616 | -11,614 |
Net income (loss) | ($524) | ($1,330) | $31,537 | ($249) | ($309) | $343 | ($9) | ($671) | $29,434 | ($646) |
Basic earnings (loss) per common share | ($0.09) | ($0.23) | $5.19 | ($0.04) | ($0.05) | $0.06 | ($0.12) | $4.89 | ($0.11) | |
Diluted earnings (loss) per common share | ($0.09) | ($0.23) | $5.19 | ($0.04) | ($0.05) | $0.06 | ($0.12) | $4.89 | ($0.11) | |
Basic | 5,824,000 | 5,826,000 | 5,917,000 | 6,161,000 | 6,191,000 | 5,776,000 | 5,775,000 | 5,751,000 | 5,808,000 | 6,112,000 |
Diluted | 5,824,000 | 5,826,000 | 5,917,000 | 6,161,000 | 6,191,000 | 5,776,000 | 5,775,000 | 5,751,000 | 5,808,000 | 6,112,000 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ||
Settlement amount | $750,000 | |
Loss on disposal, restructuring costs and other special charges | 700,000 | 447,000 |
Claim amount | 200,000 | |
Operating leases expense | 400,000 | 500,000 |
Capital finance agreement amount | 400,000 | 400,000 |
Future aggregate commitment | $3,700,000 | |
Interest rate range, minimum | 3.50% | 4.68% |
Interest rate range, maximum | 7.17% | 8.96% |
Maturity period | 3 years | 3 years |
Percentage of employees respresented by International Brotherhood of Electrical Workers | 24.00% |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Future Lease Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Abstract] | |
2015 | $366 |
2016 | 361 |
2017 | 290 |
2018 | 209 |
2019 and thereafter | 1,200 |
Total | $2,426 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||
Leasehold improvements and furniture and fixtures | $0.70 | |
Deferred rent | 0.4 | |
Minimum [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from lease termination agreement | 1.25 | |
Maximum [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from lease termination agreement | $1.50 |